The Wall Street Journal on line version (subscription required) has a long, front page article predicting world wide oil production will peak and not keep up with demand. Some oil experts are now predicting oil production could peak at 100 million barrels a day as early as 2012. Current production is 85 million barrels per day. Experts predict the 100 million barrels is well short of world demand for the next several decades. I think this quote sums it up:
“The world certainly won’t run out of oil any time soon. And plenty of energy experts expect sky-high prices to hasten the development of alternative fuels and improve energy efficiency. But evidence is mounting that crude-oil production may plateau before those innovations arrive on a large scale. That could set the stage for a period marked by energy shortages, high prices and bare-knuckled competition for fuel.” (Emphasis added)
The article cites several experts and sources both pro and con the idea that oil production will peak soon, but the information toward a peak soon is compelling. I personally have two thoughts after reading the entire article:
- There is a very large long term need for alternative fuels and properly chosen investments in companies that are in the renewable business should provide excellent returns.
- Everyone should start taking steps to reduce their dependence on dinosaur fuels. Renewable energy providers need time to increase production enough to offset oil declines without serious economic or political consequences.
If you can read the entire article and make your own analysis. The wsj.com is an excellent investment for anyone managing their own investments or who just want to stay informed.
Source: wsj.com
