Peak oil coming faster than expected, says IEA economist

…Experts backing peak oil theories, such as Matthew Simmons of Simmons and Co, have warned that sharp global declines could happen at any time, and that under best case scenarios, Saudi Arabia will be able to keep production flat for several years but not increase output to keep up with growing demand.

Critics of peak-oil assertions say it’s impossible to know when petroleum production has peaked, given uncertainties estimating global reserves, and point out that previous theories pegging a specific date for peak oil output have been wrong.

The real issue is not whether oil production has already peaked as nobody really knows whether all geological options have been exhausted,” says a report from Strategy Garden, the consulting division of the publishers of Business Intelligence Middle East.

“The main point seems to be more political, or ’surface’ based, rather than geological. In other words is there enough oil on planet earth, either discovered, unexploited or yet undiscovered, to satisfy forseeable demand? ” asks the report.

“If the answer is negative, then Peak oil is no longer a theory and the world has to get used, fast, to coping, including changing acquired lifestyle habits, with life after oil runs out,” says the Strategy Garden report.

Business Intelligence Middle East