Peak Oil Price: The Latest Industry Worry

There have been many calls on peak oil – the tipping point at which global production reaches a peak – and, due to dwindling reserves, production declines, even if demand continues to rise. In reality, the industry and the technology have proved more resourceful than predictions have allowed and production has continued to rise.

Indeed, the recent opening up of tight oil reserves in the US heralds the possibility that the US may become self-sufficient in a number of years if rates of production growth continue.Yet in spite of this creativity on the part of the extraction industry in finding new reserves (and even more challenging ways to extract them from tight formations or deep underground), we have rapidly become accustomed to the prices that would have been considered crippling just a few years ago.

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