A generalized definition of Peak Oil is closely aligned with the attributes of natural resources, except that it is indeed a fossil fuel and therefore, a finite resource. Any finite resource may climb to reach a high point of extraction, (not to be correlated with production). Once you hit the average of the total amount of the resource in question, it will decline until there is nothing left. In the context of oil resources, there is a lot of gray area: when will we hit the peak, or the most extreme possible amount. There are many proven (found) and unproven reserves around the globe and without extensive studies on the vast crust of the ocean floor, the idea of having hit Peak Oil may be disregarded as myth or theory. However, unproven reserves are increasingly becoming proven and are measured by economic standards; the limit for oil is determined by global feasibly.In the article Oil: Never Cry Wolf - Why the Petroleum Age Is Far From Over, Leonardo Maugeri discusses U.S. reliance on oil production around times of conflict and doomsday theories of oil over-extraction. Maugeri notes most "Peak Oil" doomsday theories do not include technological advances and economic freezes: "the real issue is that neither major producing countries, nor publicly traded oil companies, are keen to invest money in substantial exploration campaigns" (para. 13). Also noted in the article, a clarification on the term reserve as "recoverable reserves," which "involve an economic assessment of the possibility of producing a part of the overall resources" (para. 8).
In 2008, Keith Johnson of the Wall Street Journal questioned whether we are referring to Peak Oil geologially, or economically as we focus on "Peak Oil prices." Johnson reminded those in the "Peak Oil camp," the costs of oil going up includes damages to long established infrastructures from Hurricanes (para. 3) and other nature or man made disasters. Johnson also recalled during the Jimmy Carter administration, the call for "energy independence" and a new energy revolution will cause a reprieve on oil.
Should one peruse the internet, they will find innumerable doomsday theories, that globally, we have reached peak oil and are pushing the resource to "extinction." The environmental implications on the use of oil are well known; among them, climate change causes severe weather patterns, which it turn whips out hurricanes that destroys the infrastructure to keep oil within our reach. What was once a resource that improved travel and jobs, now becomes a barrier due to price increases - travel decreases or alternate mediums of travel are sought. Economically, yes, we have reached peak oil. When what was an unproven reserve 10 years ago, and was not considered financially reasonable to tap into, becomes an oil source today - yes, we have reached the peak. We are lapping it up, because of consumer demand; however, we will not be able to continue relying on this source and must find alternative sources for energy.
Works Cited
- Johnson, Keith. "Peak Oil, or Just Peak Oil Prices?" Wall Street Journal, Online. 16 September 2008.
- Magueri, Leonardo. "Oil: Never Cry Wolf - Why the Petroleum Age is Far From Over." Science. Vol. 304. Issue 5474 (P1114-1115). 21 May 2004.
