Oil future raises burning questions

At the height of last year’s debate on oil prices, which led to governments increasing billion-dollar subsidies on LPG conversions for cars, a senate inquiry was launched into Australia’s oil supply and the prospects for alternatives.
The inquiry was prompted by a question posed by the Greens: whether Australia should be concerned about “peak oil”, the theory that conventional oil production will reach a peak and then begin an irreversible decline.

Some would argue the world has already hit peak oil, but the consensus of peak oil theorists is that the peak will occur within the next 20 years.

Of course, oil industry officials, particularly at ExxonMobil, argue that oil supply is a function of price and that for the foreseeable future there will be supplies adequate to meet demand.

But it is certainly true that oil discoveries in Australia are failing to keep up with demand.

The Australian