An interesting read on when the oil will run out: There are an estimated 1.3 trillion barrels of proven oil reserve left in the world’s major fields, which at present rates of consumption will be sufficient to last 40 years. By 2040, production levels may be down to 15 million barrels per day – around 20% of what we currently consume. It is likely by then that the world’s population will be twice as large, and more of it industrialised (and therefore oil dependent). Where are the major oil reserves? Two-thirds of the world’s remaining reserves are in the Middle East: Country Billions of barrels Saudi Arabia 261.8 Iraq 112.5 United Arab Emirates 97.8 Kuwait 96.5 Iran 89.7 By comparison, the North Sea has around 4.9bn barrels remaining. Brazil recently discovered a new field with an estimated 5 – 8 billion barrels but such major discoveries are rare. Have we passed the point of maximum oil production? There is an ongoing debate between ‘peak oil’ theorists, who believe that we have already passed the point of maximum production, and oil companies who state that new technologies will extend the life of oil well beyond estimates. What is clear is that oil is getting harder to find and extract, and this is reflected in rising prices. A barrel that cost $10 in 1998 and $64 in 2007 today costs $135. Economists are predicting that the $200 ceiling will be broached before the end of the year. The knock-on effects are many, including a rise in the cost of fuel oil affecting manufacturing and fuel for transport, impacting shipping, aviation and road travel. Oil price increases also effect the commodity cost of stable food stuffs such as wheat and rice – the fuel for vehicles used in harvesting and transporting them doubling in price in the past year.
Posted on: Sun, 16 Mar 2014 20:08:20 +0000
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