Fossil Fuel Supplies and Renewable Resources

Will we run out of fossil fuels? Yes and no. There are two forces at work in the fossil fuel market: supply and demand. As we use a non-renewable resource, we must progressively move toward more difficult sources to maintain supply. At the start of the oil industry, crude oil could be scooped up from the ground or pumped out of wells only a few feet deep. As these were used up, we moved to deeper wells, off shore installations, and now sand and shale deposits with each move increasing extraction costs.

 No matter how much prices increase, there is a limit to how much fossil fuels can be extracted from the earth. Once this "peak" has been reached, production steadily decreases regardless of the technology applied. Studies put peak oil happening somewhere between 2004 and 2020, while coal has a similar time frame. Natural gas may last longer, but North America is already hitting peak production despite an increase in well drilling. On the demand side, the developing world is rapidly increasing its energy usage, which is leading to a major jump in worldwide demand. Even if current production rates could be maintained, this demand means increases in fossil fuel prices.

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