Peak oil rapidly approaching warns oil analyst

One of the hottest topics in the energy industry is the debate about peak oil, which refers to the point in time when global oil production goes into terminal decline. Estimates vary widely as to when peak oil will occur. The US and UK officially say peak oil will not happen before 2030. Others, like oil expert author David Strahan, believe it will happen much sooner.

Speaking at the recent World Energy Summit in Abu Dhabi, Strahan said the world is rapidly approaching peak oil, which he estimates will occur around 2017, but no later than 2020.


The consequences of peak oil will be a severe drop in the availability of conventional oil, a spike in oil prices, and a subsequent financial and social crisis that would far exceed the current shockwaves that are being felt by the sub-prime credit crunch, he argued.

Shrinking supply

Strahan offered a dizzying array of facts and figures to support his estimates about peak oil. He strongly believes that the world is well-explored for oil and new prospects are in short supply.

To illustrate his point, he said that oil output is already shrinking in 60 of the world’s 98 oil producing countries, with new countries joining the list almost yearly. Since the late 1990s, new entrants to the list have included significant producers such as Britain, Norway, Denmark, Mexico, Argentina, Columbia, Australia and Oman.

AME Info