Peak oil under spotlight

The issue of when the world will reach peak oil production, or whether it already has, came under the spotlight at Sustainabilitylive! this week.

The Oil Depletion Analysis Centre’s David Strahan told delegates that peak oil would have far reaching effects on the economy and ventured that a number of analysts believe we have already reached that peak.

He outlined how peaks in oil prices has always preceded major recessions and stressed that it was vital to address the extreme volatility of the oil markets if we are to break the damaging cycle of periods of over-production followed by scarcity.

He said that of the world’s 98 oil producing countries, 64 had now passed their production peak and called conservative estimates that global production would not peak before 2020 ‘delusional’.

“The consumption of oil in OECD countries has been receding since 2005 because the world cannot produce enough oil,” he said.

Edie