How Will the ‘Peak Oil’ Scenario Affect Our Global Economy?

Analyses of the discovery and production of global oil fields suggest that world oil production is about to peak, and within the next decade, the supply of conventional oil will be unable to keep up with demand.

‘Peak oil’ describes the scenario when crude oil production for a region, often referring to the entire world, reaches a maximum, from which it inevitably declines.

In the 1950s a prominent geophysicist, M King Hubbert, observed that oil production in the US was following the path of a bell-shaped curve. Production would have a ‘peak’ and following that peak, oil production would decline.

Source: rigzone.com (oil industry journal)