About Peak Oil
What is Peak Oil?
The term peak oil refers to a maximum rate of global oil production.
Total world production of crude oil has been almost flat since 2005, the amount of energy (and money) it takes to extract new oil supplies is rising, while competition for oil is increasing—-both from growing domestic consumption in oil-producing nations and from China, India, and other rapidly developing economies. New oil supplies are increasingly coming from difficult to access places (such as deep-water wells or war-torn nations) or expensive processes (such as hydraulic fracturing and tar sands).
Peak oil does not mean “running out” of oil. However, a plateau or slow growth in global oil production has far-reaching consequences for our economy, national security, and the environment, especially in a world of steadily increasing demand.
Of the 42 largest oil producing countries in the world, representing roughly 98% of all oil production, 30 have either plateaued or passed their peaks.