Are we about to hit Peak Oil?

Fears that the world is running out of crude oil have just resurfaced after a new International Energy Agency warning, says David Stevenson. So how worried should we be?

What are the latest jitters about?

Crude oil is what makes our modern lifestyles possible. As well as providing the world’s main transport fuel, it’s also the key raw material for the chemical, plastics and drug industries, while food production depends on it for fertilisers.

The trouble is, many credible people believe it’s running out. Dr Fatih Birol is chief economist at the International Energy Agency (IEA), whose job it is to assess future energy supplies by OECD countries. He believes that “both the public and also many governments appear oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted”, reported The Independent’s Steve Connor this week.

In other words, “Peak Oil” may hit earlier than expected.

MoneyWeek