Tuesday, July 21, 2009

Peak Oil Overview on The Oil Drum - July 2009

Gail the Actuary has a great introduction and overview of Peak Oil on The Oil Drum site. Check out his original post here.

The question now is with respect to world production. The price of oil isn't very high--is there any possibility of a near-term peak in world oil production? Lower prices would seem to suggest there is no problem.

It seems to me that if we look closely at the situation, world oil production has likely peaked, even though prices are not behaving as most had expected. Furthermore, the peaking of world oil production seems to be a major cause of the current financial crisis. The tie of peak oil to recent demand destruction points to a possible continuing destruction in demand in the years ahead, with oil prices fluctuating, but not necessarily rising to great heights.

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