Peak oil 
authority Matthew Simmons spoke yesterday afternoon before a joint committee meeting of the Minnesota House Energy Finance & Policy Division and Senate Energy, Utilities, Technology, & Communications Committee. Simmons, Chairman of Simmons & Company International, a Houston-based specialized energy investment banking firm that has completed approximately 600 investment banking projects for its worldwide energy clients at a combined dollar value in excess of $65 billion, is the author of the seminal 2005 book “Twilight in the Desert: The ComingSaudi Oil Shock and the World Economy,” which has been listed on the Wall Street Journal’s best-seller list and is a must-read for anyone interested in global petroleum supply.
Simmons’ thesis (supported by many but by no means all other petroleum industry insiders) is that worldwide petroleum production, from all sources, will soon peak, plateau and then begin a steady (and possibly precipitous) decline, at the same time that worldwide petroleum demand continues to grow steadily. The result is likely to be economic and social disruption. Yesterday’s presentation is not yet available electronically, but a very recent similar presentation by Simmons can be found on his website.
I attended the four-hour-long session (including a fascinating opportunity to talk in a small group with Simmons at length after the formal presentation and Q and A session), and came away even more convinced than before that peak oil represents a real threat to today’s petroleum-addicted world economy. I had finished reading Simmons’ book just the day before, and found it a technically detailed and informative insider’s look at just how hard it has been for Saudi Arabia to keep pace with world demand for their crucial supply of oil, and how extremely difficult it will be to keep pace with expanded demand in the near future. (The Saudis have been the world’s “swing” supplier of oil for many years as the only producer supposedly able to ramp up production, sustainably, on demand.)
Both District 25B Representative David Bly and newly-elected District 25 Senator Kevin Dahle were in attendance, as they sit on the appropriate committees in the House and Senate. A number of good questions were asked by some of the roughly 30 legislators on hand. Also in attendance were at least seven of their constituents by my count (of approximately 100 spectators in the audience) who made the trek up to St. Paul for the afternoon meeting. This is a strong indication to me of the interest that Northfield-area folks have in clean energy issues, and the importance of taking serious and expeditious local steps to address the twin threats of peak oil and global climate chaos.
I didn’t agree as fully with Simmons’ policy recommendations as I did with his analysis of petroleum production and demand realities, but I agree with his central message: WAKE UP–THE HOUR IS VERY LATE! Policy solutions at all levels of government are urgently needed.