Economist said ‘peak oil’ point is approaching

Peak oil, the point at which production of oil worldwide begins a progressive decline, is probably coming soon, economist George Littel told members of the Kansas Independent Oil and Gas Association at their annual convention this morning.

Further, Littel said, when peak oil arrives it will be an economic, not a geologic, event because demand for energy is a strong driver of new exploration and production.

But, unlike many economists who have predicted no end in sight to the U.S. appetite for energy, Littel said he sees demand for heating oil, natural gas and electricity declining. It will be driven by manufacturers’ desire to cut costs, which will move factories out of the U.S. and into countries with a larger energy supply.

He said natural gas will be further impacted as the chemical industry moves its activities closer to the cheapest sources of natural gas and then ships the plastics and other products back to the U.S.

He also predicted an “ugly end” to the U.S. ethanol industry, which he said he “could find nothing good to say” about.

The Wichita Eagle