Low Oil Warning: Planning Starts Now

The Age (Australia) – Regardless of when you think global oil production will peak, planning for a low oil future starts now, writes Elliot Fishman.

PEAK Oil is a term used to describe the point at which maximum oil production is reached; it signals that half the world’s oil reserves have been consumed. There is growing recognition, even from oil companies, that Peak Oil is upon us. Chevron makes the point in one of its advertisements: “One thing is clear: the era of easy oil is over.” Prime Minister John Howard alluded to it in 2005: “I’m afraid we’re not going to go back to the days of having petrol below a dollar for quite some time, if at all.” Even the most optimistic oil company assessment has Peak Oil hitting around 2030. Whichever camp you belong to, planning for a low oil future begins now. We have never consumed as much oil globally as we do today.

Indeed, our appetite is growing, but geological constraints will put an end to it.

The Age