Doomberg: Debunking the Peak Cheap Oil Myth
Tom welcomes back once again the Head Writer from the Doomberg Chicken Coop. In this interview Doomberg breaks down many of the energy myths around supply and scarcity in an era of technological advancement.
Doomberg discusses the hotly contested concept of ‘peak cheap oil,’ which asserts that the global economy will soon experience a severe decline in easily affordable oil due to dwindling supplies. Given a humorous twist, Doomberg confidently counters this theory in a manner that ruffles a few feathers amongst its proponents.
Despite his animated personality, Doomberg intelligently lays out a counter-narrative to the peak oil theory, asserting that technological advancements and human adaptability would consistently flex and adapt under the strain of assumed dwindling oil reserves. This plucky chicken argues that, contrary to popular belief, if there was an imminent oil crisis, current political and economic constraints would dissipate, causing nations to rally together and adopt necessary measures to prevent disaster.
Like an experienced egg-cracker, Doomberg breaks down the processes of oil refining, expressing faith in the industry’s ability to convert various hydrocarbon types into numerous usable oil products. So, even when lighter hydrocarbons are at play, Doomberg insists they can be transformed into heavier substances like jet fuel, demonstrating the industry’s adaptability.
In laying out potential solutions to the imminent dread of peak oil reality, Doomberg sounds the rooster’s crow, waking us to the possibilities we would explore to keep oil supply constant and prices economical. Doomberg avows that political restrictions would be shed, conventional oil reserves exploited, shale drilling technology would become widespread, and enormous natural gas reservoirs would be tapped. This talking Chicken Little goes even further to say that faced with skyrocketing oil prices, we would simply alter our engines to run on cheaper, abundant natural gas.
Doomberg does not mince words about the central importance of energy to the economy, reminding us that despite several crises since the 70s, our primary energy use continues to grow, showcasing our resilience and adaptability. Moreover, Doomberg reiterates that we are far from exhausting accessible and affordable oil— the limitations are more political and temporary than physical or absolute.
The talkative chicken does a beak drop on the shale oil industry, clarifying that while it is concentrated heavily in the US, the technology can be copied and used globally, particularly by significant players like China.
To cap it off, Doomberg reaffirms that we have plentiful oil reserves, and our innovative abilities, coupled with political compromises, would forestall any imminent oil crisis. In this engaging conversation laced with comedy and fowl-play, Doomberg manages to debunk several misconceptions about oil exhaustion and the looming energy crisis, presenting a future marked by human ingenuity and widespread energy production. Whether it’s talking about oil, natural gas, or ethanol, it’s clear that Doomberg is no chicken when it comes to tackling complex topics and laying out hard-boiled facts.
Time Stamp References:
0:00 – Introduction
0:35 – Twilight in the Desert?
9:54 – Crude Production
15:42 – SPR & Inflation
22:00 – Oil’s Importance
24:54 – Nuclear Narratives
27:06 – Energy Needs & Growth
28:54 – Artificial Limits?
31:34 – Global Reserves
33:26 – Shale & Analysts
35:58 – China & Energy Tech.
37:40 – Russian Resources
40:07 – Iran & Politics
42:28 – New World Oil
44:58 – U.S. Manufacturing
48:34 – Recession & Energy
50:10 – SPR & Politics
53:24 – Oil Price & Inflation
59:43 – Ethanol & Hydrogen
1:04:06 – New & Future Tech.
1:05:15 – Critiques?
1:08:56 – Wrap Up
Talking Points From This Episode
- Technological advancements and human adaptability consistently outpace fear-driven predictions of depleting oil reserves.
- Our adequate oil reserves coupled with our innovative abilities and political compromises can prevent any imminent oil crisis.
- Doomberg highlights that existing limitations to accessing readily available conventional oil resources are primarily political, rather than physical.
Guest Links:
Twitter: https://twitter.com/DoombergT
Website: https://doomberg.substack.com
Related Article: https://doomberg.substack.com/p/atlas-wont-shrug
Doomberg is the anonymous publishing arm of a bespoke consulting firm providing advisory services to family offices and c-suite executives. Its principals apply their decades of experience across heavy industry, private equity, and finance to deliver innovative thinking and clarity to complex problems.