Peak oil conference fails to settle debate

Peak Oil Conference

Today sees the final day of the "peak oil" conference in Denver, where the alarm was sounded that oil demand will soon surpass supply, triggering economic turmoil in the US and across the world.

Unsurprisingly however, those in the oil and gas industry are proving hard to convince. Major commodity firms are still calling the theory "bogus", insisting there are still more than enough natural energy sources stashed in the world's reserves to satisfy our needs for years to come. Industry experts argue the main motivation behind the "bogus" peak oil theory is to simply stimulate renewable energy development. But oil and gas companies claim they have no intention of ignoring green industries in their pursuit of oil and gas, insisting both traditional and alternative energies can be developed in harmony.

Among the peak oil believers attending the conference was Denver Mayor John Hickenlooper. The former geologist told conference attendees yesterday that it's not a question of if the world will reach the time of maximum oil production, but when.

"We cannot afford to ignore the issue," he said in a statement. "By anticipating the expected rapid changes in both supply and demand, we can begin to frame the issue not only as a challenge but also as an economic opportunity."

In response, The Colorado Oil and Gas Association questioned the credibility of such claims: "For more than five decades, various individuals have claimed that the world had reached, or was nearing, peak oil," the group said in a statement.

"With more than 200 new oil discoveries in the last year alone, it's safe to say that peak oil enthusiasts are every bit as wrong today as they have been for the past 50 years."

The Association for the Study of Peak Oil and Gas (ASPOG) has been hosting the International Peak Oil Conference at Denver's Sheraton Hotel since Sunday. The event has featured more than 70 speakers who have talked about "energy, oil, and our future."

If we were to reach a time of peak oil, the US would undoubtedly struggle to cope without a constant supply of inexpensive oil. ASPOG executive director, David Bowden, has urged US industries to "conserve, conserve, conserve", and shy away from "our monolithic oil consumption habits". Although the United States has around 5 percent of the world's population, the country uses approximately 25 percent of the world's oil supplies, largely because of auto-mobile usage.

Thankfully, this was not just rhetoric as Bowden was able to offer ways in which we can conserve our oil and gas supplies. He supports light rail projects like FasTracks, a multi-billion dollar transit expansion plan to build 122 miles of new commuter rail and light rail, instead of building more roads or expanding highways.

"Even though FasTracks has its challenges and the system is a bit limited right now, as oil supplies tightens and the prices go up, it will be necessary," he said.

But the project has come under continuous criticism for running over schedule and budget.

Falling prices at the pump, coupled with the recession have taken the oil and gas issue out of the headlines for the time being. But when the US emerges from recession and starts consuming even more oil - and rapidly developing countries like China and India do the same - the issue will soon become intensified, especially if oil production begins to drop.

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