Peak Oil

Peak Oil is here, Crude Oil price to reach $150 by 2012 Year End

The theory is named after M.King Hubbert (former Shell geologist) who created a method of modeling the production of oil. Of the 65 oil producing countries 54 already past its peak and is now declining.

Oil production in the US is down 11% since 1971, UK North Sea down 27% since 1999, Australia down 26% since 2001. Cantarell oilfield Mexico’s largest, has its output falling from 2.1 MBD in 2004 to less than 0.5 MBD today and Saudi’s Ghawar ,the world’s largest oilfield has been declining at about 5% per year.

Even King Abdullah realizes the effects of Peak Oil and had been quoted on a new oil find. “Leave it in the ground …. Our children need it”