Samuel Bodman, US Secretary for Energy

What is Peak Oil?

Peak oil refers to a time when global oil production will no longer be able to continue to expand and available production volumes will stagnate or begin to decline each year due to lack of suffcient supplies.   The vast majority of the worlds expert agree this will happen the only question is when. Opinions on the timing of the peak range from NOW until after 2030.

Why is This Important?

Oil is the most important energy source in the world.   It powers 90% of all transport including cars, planes, trucks and trains.   It is also used in many industrial applications and in the production of agricultural products.

Because this resource is so important to the modern industrial economy, minor disruptions can cause a   rapid increase in price.   For example, In the 1979 oil shock a 5% decrease in the supply of oil caused a 400% increase in the price.  This causes inflation to rise, which leads to higher interest rates and, possibly, economic recession, job losses, falling share prices and property prices.   A recent study concluded a 4% decline in the supply of oil would see the price of oil increase to $160 a barrel.   Peak Oil advocates argue we could be facing a 2-4% fall in supplies every year, leading to oil prices of $300 a barrel or more.   This would send the price of gasoline in the US to over $10 a gallon, crippling the car defendant culture of the United States and sending the world into a deep depression.

(Source: Robelius 2007)

(Source: Energy Information Agency)

When Will This Happen?

The exact timing is not important, what is important is global oil production appears to be struggling NOW and has been for the last 3 years.  The chart above shows the official crude oil production figures and clearly shows world production is not increasing despite the rapid increase in price.  This lack of new production in the face of increasing demand is the primary reason oil is approaching $100 a barrel.   Looking at the most recent data, it seems that Peak Oil is likely to occur within the next five to seven years.

What Can I do?

Ultimately there is little we can do as individuals other than prepare our family, make sensible investments, diversify our employment skills and increase our understanding of the situation.

The subject of Peak Oil can be very complex and requires extensive reading.  A casual search on the internet or online book store will highlight the huge amount of material available on the subject.   In order to assist people new to the concept of peak oil in gaining an understanding of the subject, the Peak Oil Report has been written and is available for purchase here for a small fee.  The report reduces a complex subject into an informative but manageable read with information drawn from a vast array of sources. 

The report contains the following essential information, presented in a clear and balanced 35-page report in a PDF format:

• Explains Peak Oil theory
• Discusses the latest future supply forecasts and the debate around these forecasts
• It the explains the likely economic effects of Peak Oil and what can be done to overcome the problem
• Discusses what investments might be suitable to hedge against Peak Oil and provide good profit opportunities

Buy the Peak Oil Report now for only £4.69 by clicking on the link below.   Please provide your email address with payment and the report will be emailed to you ASAP.