What is peak oil?
So you have heard the term peak oil and you are not sure what all the talk and news about peak oil is? We have answers and the truth about this scary topic. Peak oil refers to a shortfall between demand and supply of oil. It is an expected crisis that will occur when demand is no longer met by oil supply. Many petroleum experts and economists suggest that even a slight drop in prouction will bring the peak oil crisis into effect. Economies all over the world are exploding- countries such as India and China are growing exponentially, and likewise, the demand for oil is increasing very rapidly. Many peak oil critics suggest that because there are oil reserves, the whole idea is a myth. This is partially true, i.e. there are global oil reserves, but imagine a scenario where world consumption greatly outpaces production. The price of oil will shoot up, oil dependant countries will start to fall apart, and global oil resource wars will break out.
In a 1999 speech by the then CEO of Haliburton, Dick Cheney, he stated that in the next couple of years he expected there to be a 2 percent increase in global oil demand along with a conservatively estimated 3 percent decrease in oil production. That was in 1999. Today, global economies are bustling and growing at record speeds. Their use of and dependance on oil is astounding. So now what? Will we just all use less oil and narrowly miss an impending disaster? No, we won't. Here are just a few products that require oil to be manufactured or produced:
- Plastics
- Fertilizers
- Pesticides
- Candles
- Perfume
- Lotion
- Shampoo
- Boats
- Water Pipes
- Electrical wiring insulation
See where I am going with this? Yes, this very well could be a very serious problem, this peak oil crisis. Time will tell, but for now, the future does look bleak.
