Death of the Oil Economy

Oil is one of the few precious substances society needs and demands these days. Be it industrial or residential purposes, the applications of oil are myriad in number. Oil, though less visible, is used in coexistence with a range of everyday items and objects. From airplanes, automobiles, clothing, detergent, packaging, paint, hair care and hygiene products, and even vitamins, there is bound to be some type or form of oil composing the product or material.

Unfortunately, according to latest reports and studies, the economic stature is quite substandard, and from the looks of it, it is bound to continue its effects and impacts for further years to come. In fact, some are describing the age today as being the death of the oil economy. One of the people strongly advocating such a statement is Ted Trainer. Below is a discussion regarding Ted Trainer’s well known report about the Death of the Oil Economy?

According to the latest report on world oil resources, the world oil supply from 1930 to 2050 depict that the world’s oil supply will be depleted much sooner than what was formerly predicted. Designed for oil industry audiences, the study was priced $32,000 per copy and depicted that world oil supplies will most likely peak off as early as the year 2000 and is anticipated to lower up to half for the peak level of 2025. Massive and long-term escalations in oil prices are anticipated succeeding the year 2000.

Oil market experts and researchers presumed in the former years that oil supplies would last for around 50 years more, reliant upon the calculations that just separated measured reserves via the current yearly usage. Yet this technique of prediction defaulted to account for an escalation in Third World oil usage.

Depicted from the reports, if everyone were to consume petroleum oil in a per capital rate of commercialized nations, it would require a five fold escalation in present oil generation in order to meet the oil demand. If by 2060, the globe’s population surpasses the anticipated 11B mark and everyone were to deplete as much energy as the custom Australian does today, yearly global oil production would be required to escalate more than 20 times.

Seemingly, oil firms and nations exporting oil have realized that it is in their best interest to publicize that resources are substantial since their business negotiations restrict them from extracting and retailing a proportion of their prevailing resources. In fact, oil exploration rates are plummeting down sharply. The planet depletes 23B barrels of oil annually, yet the oil market locates sources only delivering 7B barrels per year.

Economists are now proactively debating regarding that inadequacy in oil supply will result in price escalations reaching tremendous heights, making it more lucrative and economically feasible to access less developed oil deposits. This proposition looks to be quite viable, given the circumstances that people prioritize cost and price rates as the most important element as opposed to other variables involved when acquiring oil.