Resource Wars

…As to peak oil, predictions of the end of oil have been made often in the past and it is not clear that frightening scenarios will play out in the short run that some suggest. There are complex issues of geology, technology, and prospective efficiency considerations. The accepted definition of proven reserves includes what is known and can be exploited economically with existing technology. Both price and potential supply are conservatively estimated for this purpose, although some experts suggest that producers have a strong interest in overestimating their reserve position. Because OPEC quotas are based on proven reserves it is in the interest of members to greatly exaggerate their reserves so they can pump more. Such

However, since only a little over a third of oil in known fields can be recovered today, technological innovation can be expected to increase the proven reserve figure. Among the optimists, Leonardo Maugeri wrote in Foreign Affairs,