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April 30, 2008

Shell Oil President vs. Reality by at 3:25 PM on April 30, 2008.

There are times when it’s all I can do to keep from screaming at my computer screen. Today, thanks to the rampant idiocy of the “let’s suspend the gasoline tax” crowd and this gem from the President of Shell Oil has been a particularly vigorous stress test of my will power.

Shell Oil president: To cut price, produce more gasoline in U.S.:

John Hofmeister, president of Shell Oil Co., the U.S. division of Royal Dutch Shell, addressed rising gasoline prices during an interview Wednesday with John Roberts on CNN’s “American Morning.”

ROBERTS: The president is advocating more drilling on U.S. territory. Isn’t it true that globally we’re starting to reach a peak in production and that within maybe a decade or two oil production will begin to decrease?

HOFMEISTER: Well, I think there is some argument [that] with convenient, easy oil we will peak sometime in the next decade. I think Shell sees that coming, but in terms of total oil supply to the world, we’re a long way from reaching peak oil because it doesn’t take into account unconventional oil.

I think the president brings up a good point in that we could, we have the available domestic supplies off the coast of Alaska as well as [the Alaska National Wildlife Refuge]. Shell has won $2 billion worth of high bids for the Chukchi Sea — that’s a few years off before we could begin production.

But let’s remember there’s more than 100 billion barrels of untouched oil and gas in this country that is subject to a 30-year moratorium. Now, there’s only one body in this country that can set a 30-year moratorium, and that’s the U.S. government.

I think you can see why I flirted with projectile cranium detachment syndrome (hereafter PCDS) and/or vascular geyserhood over this one. In case it’s not insultingly clear to you regular readers, and for the sake of the newbies I see out there in today’s audience, let me run through the details:

Excuse me, I have to go to my happy place for a while before I read much more energy and environmental news.

One Response to “Shell Oil President vs. Reality”

  1. disdaniel Says:

    “we’re a long way from reaching peak oil because it doesn’t take into account unconventional oil”

    Classic move the goalposts!

    But actually by inference the Shell president does see peak (conventional) oil in the coming decade.

    And there is always the question of how Peak Oil is defined (or what a person means by it). I know how you define it, but to some people Peak Oil = TEOTWAWKI, and it is a difficult thing (especially) for people at the center of the oil universe to accept.

    And if oil has become so central “to our way of life” that we cannot (or refuse to) change, then people will create substitutes…like a junkie in search of new veins to inject. I don’t believe oil has become so central…but hearing the insanity of 2 out of 3 serious presidential contenders suggest a summertime “gas tax holiday” makes me wonder.

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