Has Global Oil Production Reached Maximum Capacity? A Debate on Peak Oil

With the price of oil soaring to record highs and oil companies reporting record profits, many are asking whether the world has reached peak oil production. Peak oil occurs when half of all existing oil has been pulled from the ground. Some experts believe we are at peak now while others disagree. We host a debate on the issue with Julian Darley of the Post Carbon Institute and Michael Lynch of the Strategic Energy & Economic Research.

As the price of oil soars to record highs and oil companies report record profits, today we look at some reasons why this may be occurring. Last Friday, oil prices rose to over $75 a barrel with consumers paying an average of $2.91 a gallon – 68 cents higher than a year ago.

Yesterday, Exxon Mobil, the world’s largest oil company, reported the fifth highest quarterly profit for any public company in history. In January, Exxon posted profits of almost $11 billon, which was the highest quarterly profits of any company ever. Exxon now holds the first, second, fourth and fifth spots of highest quarterly earnings of any company. And Dutch Shell, another oil company, holds the third spot.

With the mid-elections looming in November, Congress and President Bush are scrambling over what to do about the public’s increasing concern over the rising oil prices and corporate profits.

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