The Peak-Oil Theory Introduced
The Peak Oil Theory has to do with the time when oil sources would peak production following depletion and will no longer be able to meet our energy demands. This theory originated in the 50s by geologists calculations. During this time, it was predicted that a peak for oil would occur between 1995-2000 globally. There is controversy about these dates, and in reality, it is hard to determine if we have reached this peak already; however, we know that offshore drilling efforts is a sign that we are reaching depletion levels. Oil is not a renewable source, and at one point, it will be gone.
In economic terms, peak oil refers to running out of cheap oil, as prices will increase - peak - when the oil becomes harder to get and less available. We are already seeing prices of oil going through the roof. Oil companies have extracted a large amount of oil on land, which was convenient and less expensive to do than looking for oil offshore; therefore increasing the need to raise prices, as offshore drilling becomes more necessary since land is depleted. What will happen when we run out of offshore sources? By that time, we may have damaged the environment in catastrophic measures.
The geologist that came up with the Peak Oil Theory was M. King Hubbert. This geologist worked for Shell Corporation. Although his theory was not taken seriously, today, we know that his prediction of USA oil production peaking in the seventies, did become true, and today, the United States gets its oil somewhere else, importing heavily. It is politically debated today the reasons for USA involvement in foreign policy in the Middle East - a region rich in oil. What would happen when the global supply peaks? Or has it peaked yet?
Whether the Big Oil People believe this theory or disregard it is not the important issue. What is important is that this theory makes a point - a real point - that eventually we will have reached more than half way of the planet's oil supply, and we had better start thinking about other sources of energy, since oil is not renewable and won't be available for other future generations. As a race that inhabits this planet, our relationship with this energy source has been one of take-take-take, and we have not cared for renew ability of energy sources. This is what this theory indirectly puts into perspective.
Peak oil does not refer to the depletion of oil, but to the point at which we are at maximum production of it, at the peak, and depletion will follow. It is hard to say if this peak has occurred already. Optimists advance the date of peak to the year 2020, while pessimists, say that we are already at the cusp, and depletion is at the corner. However, we do see political instability in oil countries, and intervention of the USA and other nations, which makes you wonder if the pessimists are right.
For now, the important issue is not the Peak Oil, but the need for starting to harness new energy sources that are renewable and environmentally friendly, so we don't have to depend - as a race - from it.