What is Peak Oil?
When something is being produced at a certain amount per day, it is usual for this daily production to reach a maximum, after which the amount produced goes down over time. This is called a “peak” in production.
Peak oil is the “peaking” of our world oil supply. Many analysts believe that this will happen within the next few years, or may even be happening already.
Why is it Peaking?
This is due to a steady decline in oil discovery since the 1970s, the biggest oil fields coming to the end of their productive lives and industry under-investment.
Why does it matter?
Our global economy – our advanced transport, houses, food, healthcare and governments – have been built on a reliable and cheap supply of oil.
Peak oil theory shows that this supply will become rarer and much more expensive quite soon, as demand is constantly increasing. This demand will probably outstrip dwindling supply and prices will sky-rocket, with grave consequences for economies and jobs.
Further Reading
BBC News on Peak Oil
The Guardian on Peak Oil
Sources
Witze (2007). “That’s oil, folks…” Nature vol. 445 issue 4. 4 January 2007. By Alexandra Witze.
