Peak Oil
Monday, February 21st, 2005There’s a idea that intrigues me, even if I can’t neatly categorize it as true or false. It is the question of whether we are at “peak oil.” To give it a fuzzy definition, it is when we are about half way through global oil reserves, and when worldwide production peaks before starting its historic decline.
I think it needs a fuzzy definition, because the future of worldwide oil production and consumption cannot be any kind of straight line projection. There are endless feedback loops, operating at all levels. This shouldn’t be one of those nonsense statements, that “at current rates we will run out of oil in 2XXX.” Consumption has never been steady, and certainly will not be as availability starts to fall.
I started just being intrigued, but then I started seeing data that supported the general idea. One of the most striking was the news that Syria and Oman (countries at the opposite ends of Arabia) were both exhibiting strangely similar declines in oil production. [Syria and Oman]
So I read further, and learned about the Hubbert Peak. It certainly makes sense in general terms.
And more news continued to roll in. Countries that we think of as oil exporters are dropping out of OPEC, as their production falls and they become net importers [link]. I can’t find links now, but I thought I saw a few “oil producing” countries switching their cars and buses to natural gas.
To save the most amusing news for last, we have word that Saudi Arabia (of all places) wants to try growing oil. You have to wonder what they really think of their own supplies when they invest in plans like that. (A more serious story about the Saudi reserve is available here.)
A number of sites are focused on peak oil. Click here for [google search], or here for [latest news].
At this point I think I find “peak oil” to be “here” in a fuzzy sense.
[UPDATE 2005.03.02 - Mexico’s Largest Oil Field in Premature Decline]