Oil Output Set to Peak, But No Fuel Shortage – UBS

(Reuters) – Oil production looks set to peak in the mid-to-late 2020s, but the decline will be offset as high fuel costs accelerate the quest for other energy sources, notably natural gas, UBS said in a study published on Wednesday.

Advocates of the peak oil theory that supplies are close to their maximum levels say it is gaining credence in the investment community.

“The cry of peak oil production has been made several times and on each of these occasions the prediction was incorrect,” the UBS report said.

“Exactly when it will occur is very difficult to estimate … However, the fact that consumption is outstripping new discoveries by more than 400 percent suggests that further increases in global reserves may be nearing an end.”
Reuters