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Discussion ... Joost Kanen ... Does Oil price collapse impact Sustainable energy production?

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Peter Burgess

Carbon Market Platform 1,052 members

Joost Kanen ... Does Oil price collapse impact Sustainable energy production?

Joost Kanen Author & Founder Gryphon Carbon Consultancy B.V.

Ten Reasons Why a Severe Drop in Oil Prices is a Problem ourfiniteworld.com Not long ago, I wrote Ten Reasons Why High Oil Prices are a Problem. If high oil prices can be a problem, how can low oil prices also be a problem? In particular, how can the steep drop in oil pric...

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Peter Burgess Peter Burgess Founder/CEO at TrueValueMetrics developing Multi Dimension Impact Accounting

I like the way Gail Tverberg tries to treat the energy industry as part of the bigger enviro-socio-economic system. As he does this and links the dots, it becomes apparent that a shock to the system like the current oil price drop is going to have a number of important consequences, many of which are difficult to predict because of the inherent complexity of the system.

Many countries that have been anticipating economic progress because of oil production are likely to be sadly disappointed, and several countries that depend on oil revenues like Nigeria and Venezuela are heading to economic crisis and possibly worse.

The link Gail Tverberg makes from the oil price situation back to the banking crisis (Dodd Frank and all that) is extremely thought provoking, and worrisome. It confirms my own concerns that we are operating a very complex enviro-socio-economic system with very crude and indeed, inappropriate metrics.

I see the state of our metrics as a problem that should be resolved. This is a recent essay I have written that describes what I believe could be a better framework for data and reporting. Specific quantification of important impacts remains to be done.
http://www.truevaluemetrics.org/DBpdfs/MDIA/TVM-Short-Introduction-to-7D-Capitalism-and-MDIA-141212a.pdf