Energy Crisis, A Discussion with Matt Simmons Pt2

Amidst skyrocketing oil prices, considerable financial activity in the oil market, and increased gas prices, producing and consuming nations alike are concerned about efficiency and supply. World Energy recently spent an afternoon with Matthew Simmons, president of the energy investment firm Simmons & Company International and author of Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy, to hear his perspective on oil supplies, pump prices, distributed generation and a return to post--World War II practices.

Oil prices have been too low for too long, he says. "The problem isn't that the prices are going up, it is that they have been so low for so long that we have been caught in a correction," explains Simmons.

The problem, notes Simmons, is not strategy; it is having a game plan for execution. In the interview, Simmons focuses beyond "peak oil" and looks at the immediate nature of the energy situation, examining both near-term solutions and long-term ones.

Focusing on renewable sources, Simmons points out the current production from these sources is roughly 1.50 percent, but that 1.50 percent is nonetheless a significant contribution. He then explains the actual potential to be unlocked in energy produced from wind and geothermal and the importance of distributed generation.

Category:

Science & Technology

Tags:

• matt
• simmons
• energy
• conservation
• prices
• oil
• gas
• water
• primetime
• tv
• peek
• rloomis1
• future
• green
• reserves
• resources

[mycatisromeo]

excellent video. so sad that only 2300 people have seen this on youtube. yet 3,000,000 people have seen a "silly-cat video"

[christo930]

We are enjoying a temporary demand destruction with a global recession which was, in part caused by high oil prices due to demand out stripping supply. When the economy tries to come back full strength we are going to see the same thing again with high oil prices. Our #3 importer (Mexico) is experiencing very high decline and their largest field is down well over 1mbd to 700k a day. With China picking up speed, where will we get another Mexico?

[Glowbetraveler]

Of course Matt is right on the ball. Americans dispose on average 5-10% of their net income on energy cost for transportation. When prices go up, just consider it a tax on driving. And as we know, taxes drive the economy in the wrong direction.

[marzinhorecife]

Good.

[christo930]

I think the high oil prices are playing a part in keeping the economy down.

[christo930]

Record oil prices in the worst recession in 80 years! Oil should be down around 10-20. China has been growing at nearly 10% since 2005, yet oil production remains flat. How is that?

[speculawyer]

Technically, Demand destruction is the permanent removal of a demand source.  Most of the reduced demand we see now is just recession based and will come back if we get out of the recession. Then the fireworks start . . . no, not celebration fireworks.

[speculawyer]

Oil is double that price now. Who's the idiot?

[yoyo762]

blah,blah,blah....oil swooning to 40 soon. some peak, eh? I call that a glut. We've got plenty of oil, idiot alarmist simmons.