Peak Oil. Are the Lights About to Go Out on Western Civilization?

Are we running out of oil? That is a question that has been talked about for quite some time. But are we quickly running out or are we just using up the most easily accessible and cheep supplies? We had two guests on the most recent episode of “Turning Hard Times Into Good Times ^[1]” radio program to give differing views on the subject.

Most of the large readily-accessible oil reserves in the world have been discovered and many of them have rapidly declining levels of production. This comes at a time when global wealth is shifting to the most highly populated countries in the world. Where will petroleum supplies come from to meet surging global demand?

We have long thought Saudi Arabia could provide endless supplies, but our special gust this week, Matt Simmons suggests the prolific oil fields of that nation are not only in rapid decline but that the supplies Americans assume still exist may no longer be extractable. Might new technologies provide a solution? If not, what will it mean for our living standards and America’s position in the world as a global super power? These and more questions will be asked of peak oil theorist, Matt Simmons.

Paul Michael Wihbey, President of GWEST (Global Water & Energy Strategy Team) also believes we have taken advantage of the most easily accessible energy supplies but says there is much more oil and gas that we can get for many years to come. He says that new finds and technology to extract those supplies will be able to meet demand and do so without costs so high that would destroy our economy.

We also hear from Amir Adnani, CEO and President of Uranium Energy Corp. to tell us about how the company is efficiently extracting uranium and will be able to get ramp up their production to be a major profitable producer. Charles Desjardins, president and Director of North American Gem, gives reasons the coal miner should be a good company to invest in.

April 27 Audio ^[2]

Matthew Simmons, chairman and CEO of Simmons & Company International, is a prominent oil-industry insider and one of the world’s leading experts on the topic of peak oil. Simmons was motivated by the 1973 energy crisis to create an investment banking firm catering to oil companies. In his previous capacity, he served as energy adviser to U.S. President George W. Bush.

Matthew Simmons is a member of the National Petroleum Council and the Council on Foreign Relations. He believes a careful assessment of Saudi Arabian oil reserves is the most significant issue shaping petroleum politics.

Simmons is the author of the book Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy. His examination of oil reserve decline rates helped raise awareness of the unreliability of Middle East oil reserves as the published reports have never been verified.

Jay Taylor