Decline of Oil

Key quote: "the trend was from more expensive energy to less expensive energy, not vice versa."

Amplify’d from rogerpielkejr.blogspot.com

The figure above comes from the IMF World Economic Outlook released earlier this week in a chapter on "oil scarcity" (PDF).

Over about 40 years oil lost about 90% of its role as a source of energy for electricity production (from a 25% share to a 2.5% share).  There are a few interesting points to take from this dramatic shift, some of which seem obvious but nonetheless worth highlighting.

1. Significant energy shifts happen. 2. They can take many decades. 3. Such shifts depend upon available substitutes. 4. The trend was from more expensive energy to less expensive energy, not vice versa.

There is a lot of material in the IMF report that will be worth a future discussion as well. Read more at rogerpielkejr.blogspot.com

 

See this Amp at http://amplify.com/u/bz2j2