World Peak Oil

What actually the peak oil is?.....What I am understand is, peak oil is the depletion of oil production. Before this, i though that the peak oil is a result of the decreasing crude oil resources. But the truth is not like that. Actually, as we know, oil is a non-renewable resource that powered the world activities. The rate of oil 'production', meaning extraction and refining, has grown almost every year. We already used around half of the original reserves, oil production becomes ever more likely stop growing and begin a terminal decline, hence 'peak'. The peak in oil production does not signify 'running out of oil', but it does mean the end of cheap oil, as we switch from a buyers' to a sellers' market. For economies leveraged on ever increasing quantities of cheap oil, the consequences may be dire. Without significant successful cultural reform, severe economic and social consequences seem inevitable.

So, how come the peak all arise?

Actually, most oil company already produced their easy-extracted oil (shallow water field). It is easy to produce, to refine and the cost is cheaper. Then, the remaining oil is far away from the shore (deep water). It is more difficult to extract and very expensive to develop. Under these conditions, the rate of production inevitably drops. This is the point of the peak oil. Furthermore, all oil fields eventually reach a point where they become economically, and energetically, no longer viable. If it takes the energy of a barrel of oil to extract a barrel of oil, then further extraction is pointless, no matter what the price of oil. ...cont

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