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>From Project Censored
http://www.projectcensored.org

Where Is the Hirsch Report?
By Richard Heinberg ([EMAIL PROTECTED])
http://www.museletter.com

Over the past few months controversy has raged over the timing of Peak
Oil-the moment when global oil production will reach its all-time maximum
and begin its inevitable descent.

Oil optimists say the event won't occur for twenty years or more, and that
market forces will result in an imperceptible transition to alternative
forms of energy. "The Stone Age didn't end for lack of stones," say the
optimists, "and the Petroleum Age won't end because we run out of oil"-but
because we find something better and cheaper with which to fuel our
society.

Pessimists point out that global oil discoveries have been plummeting for
decades and that supply and demand are now closely matched (hence the
run-up in oil prices over the past few months); moreover, there simply
isn't an alternative energy source available that can take oil's place in
the near term. They say we may be at peak now, and that the consequences
will be staggering.In short, oil pessimists spin out end-of-civilization
scenarios while optimists insist that there is nothing to worry about.

Evidently the US Department of Energy is interested enough in the Peak-Oil
debate to commission a report on the subject. Released in February this
year by Science Applications International Corporation (SAIC), and titled
"Peaking of World Oil Production: Impacts, Mitigation and Risk
Management," the report examines the likely consequences of the impending
global peak. It was authored principally by Robert L. Hirsch (bio:
http://www.d-n-i.net/fcs/hirsch_bio.htm), and is as remarkable for its
subsequent reception as for its content.

The report's Executive Summary begins with the following paragraph:

The peaking of world oil production presents the U.S. and the world with
an unprecedented risk management problem. As peaking is approached, liquid
fuel prices and price volatility will increase dramatically, and, without
timely mitigation, the economic, social, and political costs will be
unprecedented. Viable mitigation options exist on both the supply and
demand sides, but to have substantial impact, they must be initiated more
than a decade in advance of peaking.

The report's authors were not asked to assess when the global peak is
likely to occur; however they do survey the range of forecasts from
optimists and pessimists alike, projecting a peak date anywhere from 2005
to 2037.

The Hirsch report examines three scenarios: one in which mitigation
efforts are not undertaken until global oil production peaks; a second in
which efforts commence ten years in advance of peak; and a third in which
efforts begin twenty years prior to the peak. Each scenario assumes a
"crash program rate of implementation." In the first case, the study
concludes that peak will leave the world with a "significant liquid fuels
deficit for more than two decades" that "will almost certainly cause major
economic upheaval"; even with a ten-year lead time for mitigation efforts
government intervention will be required and the world will experience a
ten-year fuel shortfall. A crash program initiated twenty years ahead of
the event will offer "the possibility" of avoiding a fuel shortfall. The
report emphasizes repeatedly that both supply- and demand-side mitigation
options will take many years to implement and will cost "literally
trillions of dollars"; it also notes that "the world has never faced a
problem like this."

The Hirsch report concludes that substantial mitigation of the economic,
social, and political impacts of Peak Oil can come only from efforts both
to increase energy supplies from alternative sources and to reduce demand
for oil. With regard to the claim that efficiency measures by themselves
will be enough to forestall dire impacts, Hirsch et al. note that, "While
greater end-use efficiency is essential, increased efficiency alone will
be neither sufficient nor timely enough to solve the problem. Production
of large amounts of substitute liquid fuels will be required." Further,
"Mitigation will require a minimum of a decade of intense, expensive
effort, because the scale of liquid fuels mitigation is inherently
extremely large." Hirsch, et al., also point out that "The problems
associated with world oil production peaking will not be temporary, and
past 'energy crisis' experience will provide relatively little guidance."

Oil optimists often say that efforts aimed at mitigating the effects of
Peak Oil undertaken too soon would entail a cost to society. The SAIC
Report agrees. However, it concludes that, "If peaking is imminent,
failure to initiate timely mitigation could be extremely damaging. Prudent
risk management requires the planning and implementation of mitigation
well before peaking. Early mitigation will almost certainly be less
expensive than delayed mitigation."

Optimists also insist that the market can take care of the problem: high
oil prices will stimulate more exploration, the development of more
efficient cars, and the deployment of alternative energy technologies.
Interference with market mechanisms would be harmful, they say, and so the
government should steer clear of the problem by avoiding setting higher
efficiency standards, subsidizing renewables, and so on.

The report's authors dismiss these claims. Price signals warn only of
immediate scarcity; however, the mitigation efforts needed in order to
prepare for the global oil production peak must be undertaken many years
in advance of the event. Hirsch, et al., maintain that, "Intervention by
governments will be required, because the economic and social implications
of oil peaking would otherwise be chaotic. The experiences of the 1970s
and 1980s offer important guides as to government actions that are
desirable and those that are undesirable, but the process will not be
easy."

Here, then, is a significant report produced by an independent research
company for the US Department of Energy, warning of a global problem of
"unprecedented" proportions with economic, social, and political impacts
that are likely to be extremely severe. The authors forecast "protracted
economic hardship" for the United States and the rest of the world. It is
a problem that deserves "immediate, serious attention."

Yet, half a year after its release, the Hirsch report is nowhere to be
found. For several months it was archived, in PDF format, on a high school
web site (www.hilltoplancers.org, Hilltop High School in Chula Vista,
Calif.). On July 7 the report disappeared from that site. The Atlantic
Council (www.acus.org) is considering publishing the Hirsch report;
however there is no projected date of release. When contacted, Dr. Hirsch
replied that the document is "a public report, paid for and released by
DOE NETL, and that it therefore could be reposted at will." Project
Censored is therefore posting the report in full at:
http://www.projectcensored.org/newsflash/The_Hirsch_Report_Proj_Cens.pdf

If the content of the Hirsch report is to be believed-and there is every
reason to think it should be-then this is a document that deserves the
close attention of every leader of government and industry in the US.
Newspapers and newsmagazines should be running excerpts and summaries.
Instead, there is nearly total silence. In late May Robert Hirsch
presented the substance of the report at the annual Workshop of the
Association for the Study of Peak Oil (ASPO) in Lisbon, Portugal to an
audience of about 300
(www.cge.uevora.pt/aspo2005/abscom/Abstract_Lisbon_Hirsch.pdf ). That
event received virtually no press coverage in the US.

Meanwhile oil is hovering around $60 and is likely to head higher, and
analysts look to the fourth quarter of 2005 unsure whether supply will be
able to keep up with burgeoning demand.

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