Quick Layman’s Primer to Peak Oil

Strangely enough, I found this primer in a Financial Times book review:

FT: Why Your World is About to Get a Whole Lot Smaller

As the review states, the concept of peak oil generates semi-emotional responses, from the true believers’ apocalyptic preparations to the skeptics’ derisive dismissal due to supreme belief in human ingenuity. But setting aside the technical details of the debate, if peak oil is indeed right, the practical ramifications are that oil will be harder and more expensive to find. If we do find new oil, the discoveries will be smaller than those in the past and be more of a pain in the ass to exploit.

Despite all the talk of US petrol demand at this or that low, I have yet to see one piece of evidence that may dissuade me from peak oil. Note Petrobras is now talking of bring on partners to explore their various offshore finds — they simply don’t have the technology to exploit the Tupi and other sub-salt fields.

Unless one makes the case that the peak of historic human economic activity occurred in the mid-to-late 2000’s, investors should consider the impact of energy supply constraints going forward.

More on this topic (What's this?)
Peak Oil and Petrobras
Peak Oil Reality
Read more on Peak Oil, Oil at Wikinvest

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