Oil Peak

Feasta Economist Richard Douthwaite on Greenhouse Emissions and the Oil Peak

Ireland — along with much of the western world — relies on the International Energy Agency‘s oil production forecasts. But are they reliable, asks Lenny Antonelli?

Economic analysts are starting to warn of the threat rising oil prices pose to Ireland’s recovery prospects. Richard Douthwaite argues that energy efficiency and renewables investments must be central to government plans, and explains how more than 100% of the cost of energy investments may come back to the exchequer.

As the organisation entrusted by OECD countries to predict future global energy supplies, the International Energy Agency’s projections have significant impact on energy policy around the world. IEA officials recently told The Guardian that the organisation’s figures on oil supply had been inflated and that oil peak is happening. Richard Douthwaite assesses the fall out

With oil prices remaining at ominously high levels in spite of sluggish economic growth figures and efforts by the International Energy Agency to release additional capacity, Ireland must act fast to cut oil usage. Why then, has the government withdrawn grants for renewables while continuing to subsidise oil and gas boilers?

In terms of 1972 money, oil prices averaged about six dollars a barrel between 1987 and 2000. Last October they reached $40. They are now around $50 a barrel which means that they are beginning to climb back into the territory which caused the global economy to crash in 1979/80.

Duncan Stewart demands an energy revolution