Definition of peak oil

Peak oilThe debate over “peak oil” – the point at which the world’s oil supplies go into irreversible decline – is a long-running argument that has not yet had much impact on energy policy.

Some geologists argue that peak oil is either very close or has passed, and the world will never again be able to produce the 83m barrels per day that flowed in 2008.

They are exasperated by what they see as the complacency of policymakers and analysts, particularly the International Energy Agency, which last month predicted that oil production could reach 103m barrels per day by 2030.  [1]

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The burning issue

 

peak oil in the news

In April 2013, the FT's commodities editor pointed out that the focus on peak oil had shifted from discussion over a peak in supply to the possibility of a peak in demand. He pointed to a paper from an oil analyst at Citigroup who wrote that the substitution of natural gas for oil combined with increasing fuel economy meant oil demand was approaching a tipping point.

In August 2013, an FT writer commented on the closure of The Oil Drum, a specialist oil blog site. She said its archiving had nothing to do with the demise of the concept of peak oil because of its increasing extraction from new sources.

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