Applicability Beyond The US, Critical Remarks
The Hirsch Report urged a crash program of new technologies and changes in manners and attitudes in the US and as well implying more research and development. The report cites a peaking crude oil supply as the main reason for immediate action.
During the significant oil price rise through 2007, a theme among several industry observers was that the price rise was only partially due to a limit in crude oil availability (peak oil). For example, an article by Jad Mouawad cited an unusual number of fires and other outages among U.S. refineries in the summer of 2007 which disrupted supply. However, a lack of refining capacity would only seem to explain high gasoline prices not high crude oil prices. Indeed, if the refineries were unable to process available crude oil then there should be a crude oil glut that would reduce crude prices on international crude oil markets. Then again, sharp changes in crude oil prices can also be due to stock market volatility and fear over the security of future supplies, or on the other hand an anticipation by investors of a rise in the value of crude oil once refining capacity picks up again.
As for the global usefulness of the Hirsch conclusions, as of 2004 the US share of global oil consumption was about 26%, while its share of world population was only 4.3%, Europe took 11% of global oil while having about 6.8% of world population. An average car in Germany uses about 8.1 liter per 100 km, the US consumption 16.2 L. In US terms 1 gallon delivers 44 miles in Germany but only 22 in the States.
So far a part of the changes ultimately requested by Hirsch for the US have been already implemented in Europe (and cum grano salis in Asia). The difference had been much smaller at the start of the 70s. Europe adapted more after the various oil shocks and enhanced the changes by introducing much higher taxes on gasoline. The differences now are not only a lack of energy saving technologies, in car building and usage, and passive insulation of buildings in the US. The traditional significant differences in the setup and density of settlements, share of suburbs, use of public transport and consumer behavior have been widening. Taking this into account, a peak oil shock as outlined by Hirsch will have a much more severe outcome in the US compared to other parts of the world, especially Europe.
Read more about this topic: Hirsch Report
Famous quotes containing the words critical and/or remarks:
“From whichever angle one looks at it, the application of racial theories remains a striking proof of the lowered demands of public opinion upon the purity of critical judgment.”
—Johan Huizinga (1872–1945)
“So, too, if, to our surprise, we should meet one of these morons whose remarks are so conspicuous a part of the folklore of the world of the radio—remarks made without using either the tongue or the brain, spouted much like the spoutings of small whales—we should recognize him as below the level of nature but not as below the level of the imagination.”
—Wallace Stevens (1879–1955)