Oil Demand : Did The Oil Save The Whales

952 WordsSep 30, 20144 Pages
Maggie Lin Economics of Energy Week 3: Oil Demand: Did the oil save the whales Professor Wagner The theory of ‘peak oil’ represents the inevitable peaking and consequent decrease in the amount of oil produced in nations. The phrase ‘peak oil’ means the time when the maximum rate of global petroleum extraction is reached after which a terminal decline in the rate of production occurs. Hubbert invented and first used the models behind peak oil to predict that United States oil production would peak between year 1965 and 1970. The Hubbert model and its variants have described with reasonable accuracy the peak and decline of production from oil wells, fields, regions, and countries, and have also proved useful in other limited-resource production-domains. There are lots of debates about when peak oil will occur all around the world and the answer is uncertain. Some economists tend to believe that it will be decades away while others believe it has occurred all ready. Because the world relies so much on this finite resource it is a crucial problem that needs to be addressed. Peak oil will force the change in which society operates and will have a large influence on the world economy as it has had in previous years. The demand for oil globally is going to be continually increasing before alternatives are found. Peak oil is directly related with the economic state of nations and has great potential to lead to global economic recession as it has done in the past. Industries such

More about Oil Demand : Did The Oil Save The Whales

Open Document