Peak Oil

What is Peak Oil  Peak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline  Peak oil is often confused with oil depletion; peak oil is the point of maximum production while depletion refers to a period of falling reserves and supply.

Demand Demand grew an average of 1.76% per year from 1994 to 2006 World demand for oil is projected to increase 37% over 2006 levels by 2030 Currently the world is using million barrels of oil a day

After the Peak  Some believe that when oil production decreases, human culture and modern technological society will be forced to change drastically.  If alternatives sources are not found then items made with oil would become scarce and expensive.  This includes everything made from fertilizers, detergents, solvents, adhesives, and most plastics

The 2005, the USA Department of Energy Report on Peaking of World Oil They stated that – World oil peaking is going to happen, and it will be abrupt and revolutionary. Oil peaking will adversely affect global economies, particularly those most dependent on oil. Exporting countries will be forced to reduce their exports more quickly than their production decreases Emphasized the need to find alternatives at least years before the peak Need to phase out the use of petroleum over that time

How Much Oil is Left? "Oil companies spent $8 billion on exploration in 2003, but discovered only $4 billion of commercially useful oil." - New York Times

How Much Oil is Left?  It was estimated that there were here were oil reserves of 1.1 trillion barrels in 2006  Which should last around 85 years, however the peak will occur much, much sooner  Also the Chinese Economy is growing rapidly and this will very significantly increase the demand in oil