Saturday, April 06, 2013

Peak Oil: the Oilman and the Analyst

James Hamilton looks at some of the history of peak oil predictions, in particular those of T Boone Pickens and Daniel Yergin. Pickens claimed back in 2005 that we were already there. Yergin saw a lot of remaining capacity to increase production. So far, at least, Pickens is looking a lot better. Despite the miracle of fracking and a big run up in prices, global oil production has barely budged - though it has increased by a couple of per cent.

Of course there is still a lot of oil out there, if the price is high enough, but big increases in production appear to be getting pretty difficult.