Peak Oil When M. King

Peak Oil

When M. King Hubbard recognized that oil fields actually peak and then decline in their output, and that global oil production also reached a pinnacle before declining, he coined the term "peak oil," ("Oil Depletion"). Therefore, peak oil does not refer to the end of the supply. At its peak, oil production and supply have reached as high as they will ever get and from that point on, demand will significantly outweigh supply. The peak oil theory is not universally accepted but industry experts indicate that "only about 1 barrel of oil is being discovered for every 5 or 6 extracted," ("Oil Depletion"). Production of oil has also declined. The exact timing of peak oil is unclear but based on available evidence, may arrive any time between now and 2030 ("Oil Depletion").

Because the world has become dependent on petroleum products, peak oil may have significant consequences for the global economic and political systems. In addition to driving the price of oil up significantly and irreversibly due to the supply-demand curve, peak oil would also mean increases in all production costs. Heavy machinery of all types, including agricultural machinery and manufacturing technologies, depends on petroleum-based fuel to run.

Of course, all major modes of transportation depend on fossil fuels too: automobiles and airplanes guzzle gas. Richard Heinberg claims that almost 100% of transportation in America is oil-dependent. If oil prices rise in response to diminished supply, then the cost of commercial goods and services transportation will rise considerably. Higher oil and gas prices therefore mean that ordinary working class citizens will have less money in their pockets. Not only will their goods and services cost more but so will their daily commute and in many cases their heating bills.

Another major consequence of peak oil will be its impact on the petrochemical industry. Almost every plastic product is made with petroleum. Idealists once believed that fossil fuels would supply the world with an endless stream of consumer goods. Overuse and overproduction of petroleum-based products ranging from carpets to computers has contributed to the depletion of the world's oil supplies. In addition to making many of these products either obsolete or overpriced, peak oil would draw attention to the dire repercussions of petrochemical pollution ("Oil, Chemicals, and Plastics").

Heinberg notes that peak oil is not just a simple supply-demand problem. Because peak oil signals an irreversible, steady decline of oil supply, prices of oil will never stabilize. The global economy has been based on a spurious foundation: faith in fossil fuels. Economic growth under the current market system depends on cheap oil. If oil is no longer cheap, we are facing a worldwide economic, social, and political disaster.

3. The most shocking aspect of the readings on peak oil was the litany of products that are made with petrochemicals and their impact on health and the environment, listed on "Oil, Chemicals, and Plastics." Products we take for granted, like the ballpoint pen, depend on petroleum.

Similarly, the use of petrochemicals in agricultural pesticides is shocking. To know that for so long people have put up with such harmful pollutants in their food and water supply is astonishing. Short-sightedness and greed have caused most of the problems we face today and have also caused peak oil.