The Oil Drum: Australia/New Zealand

Rising North Sea oil production was a significant factor in keeping oil prices under control in the 1970s, 80s and 90s. Production peaked at 6.4 million barrels per day in 2000 and since then, declining North Sea Oil production is one significant reason that oil prices are now rising exponentially.

This is Part 2 of my post relating to curriculum for a science peak oil course. It incorporates changes based on many of the comments made below. Part 1 can be found here. A PDF version which contains both Part 1 and Part 2 can be found at this link.

One theme of Part 2 is energy, and why energy is important to our standard of living. I try to compare the energy in oil to the energy in food. To make the comparison more understandable, I convert energy to kilocalories, since most people are familiar with calories in food. I also point out the errors of economists, both in the text and in the discussion questions at the end.

Another theme is the special characteristics of oil, and why oil is valued as a liquid fuel. I think we are sometimes kind of fuzzy in our thinking about substitutes for liquid fuel. We don't think about our built infrastructure, and just assume electricity can be substituted for oil when it really is at best a very long-term alternative. I discuss various alternatives including battery-operated cars, hydrogen, and conservation. The two sections relating to corn ethanol could probably be a post of their own.

I also talk about the impact of oil on prices. I make the point that big increases in petroleum prices are likely, with only a small shortage of oil. I also point our that food prices are likely to increase, partly because of the use of petroleum for food production, and partly because corn for ethanol competes with food for land use.

On something of a holiday in Tasmania last week, I learned a great new joke about economists...(more under the fold...)