Global Oil Production About To Peak? A Recurring Myth
Once again, we are hearing that world oil production is “peaking,” and that we will face a steadily diminishing oil supply to fuel the global economy. These concerns have been expressed periodically over the years, but have always been at odds with energy and economic realities. Such is the case today.
Let’s look at some history: In 1874, the chief geologist of Pennsylvania predicted we would run out of oil in four years—just using it for kerosene. Thirty years ago, groups such as the Club of Rome predicted an end of oil long before the current day. These forecasts were wrong because, nearly every year, we have found more oil than we have used, and oil reserves have continued to grow.
The world consumes approximately 80 million barrels of oil a day. By 2030, world oil demand is estimated to grow about 50 percent, to 121 million barrels a day, even allowing for significant improvements in…