Peak Oil Coming Soon?
A new report, created by BP, an oil company, released yesterday says that they believe there is enough oil to last 40 years at the current rate of consumption. The independent Oil Depletion Analysis Centre disagrees: They believe we could see peak production very soon.
According to the Centre, we could see the production of oil peak in just four years time. After that, supply will begin to steeply decline even as demand continues to rise.
The danger is not in oil running out. What people need to be concerned about is oil not keeping up with demand. We've seen gas prices rise over a dollar a gallon in the past three years over a 1-2% gap in the difference between demand and supply. If supply peaks while demand rises, I fear we will become nostalgic for the days of $3 gas.
Why is there such a huge disparity in the opposing claims? Well, it is in the best interest of the oil industry to keep people believing it will last for a while longer. If world governments thought we were going to fail to meet demand, billions of dollars would go into alternative fuel research. It's about profit. Oil companies are making a huge windfall over the small gap we see today. If the gap between demand and supply widens, gas prices will soar and profits will follow suit.
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