Understanding Peak Oil
Peak oil is a holdall concept that encapsulates the consequences of global resource depletion and the possible after-effects on the global economy. In simplistic terms, the argument presents that as oil is a finite resource as some point in the future – known as peak oil, it will require more energy to extract a barrel of oil than that barrel will provide. Access to the cheap energy supplied by petroleum and petroleum by-products allows the global economy to function as it does now and the coming of peak oil is expected to cause a serious downturn in the global economy, creating a strong case for pursuing more renewable energy alternatives.
The concept of peak oil was first discussed in the 1950’s based on observations of the US domestic oil industry. The familiar bell-curve was found to roughly match the productivity of an oil-bearing region over time and the theory was read more...
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