Reporting on Peak Oil

Analysis:

This article is a step up from the numerous local news stories about rising gas prices. Unlike many of those stories, this article does provide some background information putting rising gas prices into a larger context. An independent source is provided, in this case Tom Mast, author of a book on oil supply. A local perspective is included, the Michigan Alternative and Renewable Energy Alternative and Renewable Energy Center, although the information provided about this facility is rather limited. While this story does point out some of the basic facts about the limitations of the oil supply and the possibilities of various alternative energies, there are other related topics left out. One relevant topic not addressed is the government’s role in pursuing alternative energies and formulating energy policies. Information about the amount of public funds allocated to research on renewable resources would be useful information to give the viewer. Also not addressed is the role of government policy in advancing the interests of the large energy and oil companies, as well as the level of subsidies and public funding they receive.

While much of the story is factually correct, the final comments by the newsreader is questionable. The story ends with the newsreader noting “Some economists believe that as oil prices rise, demand will decline, and so will worries about a shortage.” Viewers should ask themselves which economists are being referred to here? This is never clarified so the statement is not easily verified. Nor does the evidence on oil demand back up this conclusion. Global demand for oil has been increasing dramatically over the past decade, particularly in emerging economies such as China.

Story:

WOOD 8 Newsreader – With gas prices hitting record levels, there is growing concern that he world in running out of oil. 24 hour news Anne Schieber recently talked to an oil industry expert from Texas to learn more about oil alternatives and their hurdles.

Reporter – Never before has filling up the gas tank felt so painful.

Motorist #1 – My wife just put 19 gallons into our van it cost her 53 dollars.

Motorist #2 – Right now I’m going to Detroit so it’s going to cost me like 60 dollars, to get there and get back

Reporter – Motorists either give up or put up.

Motorist #1 – We can’t afford to go shopping or take our kids to the schools they want to go to, the rich people can afford it but the middle class people can’t.

Reporter – This year gasoline prices are up over 50% than the price last year. That makes it the highest level ever, even with inflation. Much of the spike having to do with the skyrocketing price of oil.

Tom Mast – We think it’s always going to be there because we’ve had it the last hundred years or so.

Reporter – Tom Mast is an energy expert from Texas who is so worried about the supply of oil that he set out to write a book that would be non-partisan, simple and brief.

Mast – I realized that this oil situation is very complex, and I’m and engineer but most people don’t have the interest or the background to really understand it.

Reporter – In his book “Over a Barrel”, Mast shows what has become a
Center point in a theory known as peak oil. When world wide production of oil peaks, and then rapidly declines because it can’t meet demand. Proponents refer to graphs like this one in Mast’s book, showing world oil discoveries by the decade. They’ve been downhill since the 50’s. Mast believes this is no secret to the oil industry.

Mast – They have gobs of money, they have huge amounts of money but they’re not spending much of it in efforts to find new oil.

Reporter – finding a replacement for oil is going to require a lot of brain energy. One of the nice things about oil is that it’s very portable. It converts pretty easily into things like gasoline. And it’s chalked full of energy, no wonder 97% of the worlds transportation depends on it. Coal, solar, wind, hydrogen, nuclear, even waste from farms: plenty of sources, some even cleaner burning than oil. But so far turning them into a portable fuel has required more energy and money than they produce. It might be easier to turn those alternatives into electricity, but then somebody has to build a battery that will last longer than a couple of hours.

Mast – We need to be working on a lot of things in parallel because we don’t know what the winners are going to be.

Reporter – The Michigan Alternative and Renewable Energy Alternative and Renewable Energy Center, a joint venture by Grand Valley State University and the city of Muskegon, is attempting to be a development center for alternative fuel. But things are off to a slow start. None of the start up companies were in on the Friday morning that we visited. The main activity that day was a conference on child abuse. The centers director expects actively to heat up once the university is back in session.

Imad Mahawili – But not much happens the whole facility is the program that you are seeing, the fuel cell is working, everything you saw in light was actually functioning.

Reporter – You can see a number of alternative energy technologies in action in the center, including this fuel cell which extracts hydrogen from natural gas to provide power for the building. But with a 1.3 million dollar price tag, and a shelf life of about 5 years, it’s hardly ready for household use. Experts like Tom Mast think that a search for an alternative to oil is not impossible. It requires will.

Mast – When John Kennedy decided to send a man to the moon, he just said we were going to do it. And we’re going to do it in a decade and by golly we did it.

Reporter – If oil prices continue to heat up, there may be no shortage of will. Anne Schieber, 24 hours news 8.

Newsreader – No one knows exactly how much oil the earth holds. It’s difficult to determine scientifically and countries are reluctant to share geological data. Some economists believe that as oil prices rise, demand will decline, and so will worries about a shortage.

Total Time: 4 minutes 15 seconds