Peak Oil Puts the World in a Different Reality
Matthew Simmons, a highly respected investment banker and adviser to the Bush administration, is quoted in Al-Jazeera (Feb. 22) as saying that "we may have passed peak oil." This is significant in that peak oil represents the dividing line between cheap oil and expensive oil, or, put another way, between a supply of oil we don't have to worry about and a supply of oil that may lapse into shortages and place our economy and the world economy in jeopardy.
Simmons recently investigated Saudi Arabia's ability to continue producing large quantities of oil and has a book scheduled to appear at the end of May titled "Twilight In The Desert: The Coming Saudi Oil Shock And The World Economy."
Peak oil goes back to a concept introduced by M. King Hubbert that oil production follows a bell-shaped curve, reaching a peak in production similar to a rollercoaster slowing as it reaches the top of the curve and picking up speed again as it plunges off the other side.
|<< PREVIOUS||NEXT >>|
blog comments powered by Disqus