Why the Peak Oil Movement Failed  

John Michael Greer (aka The Archdruid) has a look back at why the peak oil "movement" (a term I've always loathed) faltered so quickly once oil prices dropped back off their late 2000s / early 2010s highs - Why the Peak Oil Movement Failed.

As I glance back across the trajectory of this blog over the last ten and a half years, one change stands out. When I began blogging in May of 2006, peak oil—the imminent peaking of global production of conventional petroleum, to unpack that gnomic phrase a little—was the central theme of a large, vocal, and tolerably well organized movement. It had its own visible advocacy organizations, it had national and international conferences, it had a small but noticeable presence in the political sphere, and it showed every sign of making its presence felt in the broader conversation of our time.

Today none of that is true. Of the three major peak oil organizations in the US, ASPO-USA—that’s the US branch of the Association for the Study of Peak Oil and Gas, for those who don’t happen to be fluent in acronym—is apparently moribund; Post Carbon Institute, while it still plays a helpful role from time to time as a platform for veteran peak oil researcher Richard Heinberg, has otherwise largely abandoned its former peak oil focus in favor of generic liberal environmentalism; and the US branch of the Transition organization, formerly the Transition Town movement, is spinning its wheels in a rut laid down years back. ...

Geological realities imposed, and continue to impose, upper limits on global petroleum production, but economic forces have determined how much less than those upper limits would actually be produced. What happened, as a result, is that when oil prices spiked in 2007 and 2008, and then again in 2014 and 2015, consumers cut back on their use of petroleum products, while producers hurried to bring marginal petroleum sources such as tar sands and oil shales into production to take advantage of the high prices. Both those steps drove prices back down. Low prices, in turn, encouraged consumers to use more petroleum products, and forced producers to shut down marginal sources that couldn’t turn a profit when oil was less than $80 a barrel; both these steps, in turn, sent prices back up.

That doesn’t mean that peak oil has gone away. As oilmen like to say, depletion never sleeps; each time the world passes through the cycle just described, the global economy takes another body blow, and the marginal petroleum sources cost much more to extract and process than the light sweet crude on which the oil industry used to rely. The result, though, is that instead of a sudden upward zoom in prices that couldn’t be ignored, we’ve gotten wild swings in commodity prices, political and social turmoil, and a global economy stuck in creeping dysfunction that stubbornly refuses to behave the way it did when petroleum was still cheap and abundant. The peak oil movement wasn’t prepared for that future.