The world could face more of a liquid fuels than crude oil shortage as national economies recover, experts agreed at an Oct. 7 Capitol Hill forum. Global liquid fuels production hit a plateau in mid-2004 where it has generally stayed despite the strongest economic recession in decades, said Robert L. Hirsch, a senior advisor at Management Information Services Inc.
Several nations’ gross domestic products could plunge as a result, he warned at the event cohosted by the Environmental & Energy Study Institute and the Association for the Study of Peak Oil & Gas. “The countries that would be hurt the most would be the ones relying most heavily on imports,” said Hirsch, who wrote a report on possible peak oil impacts for the US Department of Energy.
“It’s a liquid fuels problem, not energy. Anyone who tells you that windmills will help is early in his or her understanding of the issue,” he maintained.
“There are huge challenges for meeting rapidly growing demand for liquid fuels,” noted Franklin Rusco, the US Government Accountability Office’s natural resources and environment director. “All commodities’ prices are going to be affected. Before the recession, their prices were high. They can be expected to resume their growth as national economies recover.”
Countries can prepare by aggressively moving rail and other major transportation systems to electricity from diesel fuel, suggested Tad Patzek, chairman of the University of Texas at Austin’s petroleum and geosciences engineering program. “We need modes of transportation that rely less on liquid fuel. This will need to involve coal and nuclear as well as natural gas,” he said.
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