Oil Is Not Running Out

Peak Oil Theory was suggested by M. King Hubbert in 1956 and provided a model which showed a bell curve indicating when oil production would peak and then decline. It was widely accepted and used to popularise the idea that oil is running out and that as it becomes scarcer the price will inevitably increase. However, there is a growing group of dissenters who believe the reliance on peak oil theory is outdated and inaccurate and has been used as a justification for the obscene profits being accumulated by the big oil companies. They argue that there are still huge amounts of untapped oil in the world and the lie about its scarcity is just an excuse to drive up prices.

This is a conspiracy theory with a very obvious vested interest in concealing the lie: greed. Despite predictions that peak oil production would be reached years ago, it has continued to flow and the predicted decline has not yet begun. In fact, oil production has increased every year for the past 150 years. There is no real argument that it will eventually run out, simply an assertion that the remaining amount has been grossly misrepresented to the general public.

When Hubbert predicted that US oil production would peak around 1970 he was proved correct and this led to the widespread adoption of his model; however, there are a number of factors which it doesn’t account for. Every year the oil industry spends millions, not just on identifying new sources of oil but also on improving the extraction process and refining unconventional sources which makes previously unattainable oil available to future generations.

Another big player in oil production is the political stability of countries with large oil reserves. Due to political problems and war, oil production in Nigeria and Iraq has been dramatically reduced. In Russia the government introduced strict guidelines for exploration and have squeezed the profit margins of the big oil companies to the point where they are looking elsewhere instead, but this doesn’t mean that there isn’t still a large untapped reserve of oil in Russia. Mexico has made attempts to increase production but faces political opposition in their own parliament. Saudi Arabia is already making so much money that they have no incentive to increase the flow, and due to political manoeuvrings by President Chavez, Venezuela has reduced production. Even in the US and Canada areas such as Alaska are suspected to contain more oil, but destructive exploration is blocked by environmental legislation.

The wealth and power generated by the idea that the oil is running out is incalculable, and it is clearly in the interests of big oil-producing countries to exploit this fear for their own gain. There are many supporters of the view that Peak Oil Theory is a scam of sorts and they predict various outcomes, but what we can state unequivocally is that it has helped generate massive profits and that despite predictions the peak has not yet been reached. The real problem, and the reason it can’t be proved one way or the other, is that we won’t be able to see the peak until we pass it. Find out here about the benefits of ssd drives.