Peak Oil

In terms of oil dependence, most of the general public believes that the world has enough oil to support us for the next hundred years; in truth we are rapidly depleting our petroleum sources due to the increasing population and demand. In fact, as was initially theorized by the Hubbert Peak Theory in 1950, Earth peaked in oil supplies in 1973 and the largest oil resources that have been discovered since then have been in Venezuela and Saudi Arabia. Here it must be

Oil is the product that each and every one of us use. It can be used for fuel, heating and even cooking. The most often known for unstable price is crude oil or gasoline. According to the The Economist, The main reason for price shifts of oil is oversupply. The oil production in Saudi rose 10.3 million barrels per day. This increase is the effect of a new method that I being applied to oil extraction. This method is called fracking, fracking is where they drill into tight-rock formations then gradually turning horizontal for several thousand feet more. This results to accommodations to multiple oil wells. This new approved method of oil harvesting has raised the productivity gains and reduced the cost of harvesting oil.

The consumption of the oil cause changes in the supply and demand. The United States produces 11 million barrels of oil every day. We are one of the biggest countries to have a big influence on the production and prices of the oil. The basic supply and demand theory explains that the if a product is produced more, the cheaper it should sell. If a country were to double the output of oil day, prices would fall and the Production is high, but the distribution of oil isn’t keeping up with the market. The United States builds an average of one oil refinery per 10 years. This is a net loss due to the fact construction has slowed down since 1970s. Since 1970s, the United States has 8 less oil refineries today. The reason why we are not oversupplied with cheap oil is because of the other countries’ higher net margin and the only operate at 62% of their capacity. Excess capacity is only there to meet future demand. With demand moving accordingly, oil prices will continue to be set mostly by the market — despite external players’ best efforts. (McFarlane)

[Oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.” (Koch par. 2)]

Economically, the oil industry will only pull us down as a country. Professionals believe that even though oil prices are falling, the production will start slowing and the prices will skyrocket again. The typical consumer would see that the price of oil barrels has fallen from one hundred to eighty dollars in the past year, but the consumer will not see the impact it will have outside of gas prices. Back in 2005, sixty percent of U.S. oil was imported, and the effects of a drop in prices would have been observed in the countries that we imported from. Today, however, only thirty percent of our oil is imported. With such a high amount of domestic oil, the low prices impacts the American

This number may comfort some, but there is still reason to be fearful. Ninety percent of Earth’s refined oil is burned through transportation, with the United States consuming 25 percent alone (Davy par. 5, 6, 8). Collectively, factors will add up to devastating consequences later if change isn 't pursued. Geophysicist M. King Hubbert confirmed, through a calculated formula, that oil production will increase to a peak in the year 2030, but will proceed to decline soon after until oil drains too far down to be economical to continue drilling or having the well run out entirely

Although its been said that we may only use oil for 10 to 15 more years before we hit our peak, If it is conserved it can be used for many more. Even though I believe it isn’t going to be conserved and never will be, it is a possibility. (Oil Shale and Tar Sands Program, 2012)

In the year 2013, according to the U.S. Energy Information Administration, the United States consumed a staggering 6.89 billion barrels of oil (U.S.EIA). Which in fact, equates to 18.89 million barrels being consumed every single day. That is a vast amount of petroleum products being consumed on a daily national level. If the calculation is made, based on a barrel equaling forty two gallons, it would come out to 289,583,700,000 gallons per year, or 793,380,000 gallons per day. The amount is incredible, almost unbelievable. If the United States continues its use of oil at this rate, the supply will only last another forty years. With more and more cars being on the road and operating machinery performing tasks, the supply of petroleum will not be able to meet demand forever. As our use of fossil fuels increases, so does our need for a new source of renewable energy.

needs coal, coal-fired plants, and nuclear power plants to create jobs, and wind energy to help generate electricity. The U.S. can find sources around here to use, and then they can slowly back away from being dependent on foreign oil. Is the U.S. trying to drain the other countries of their oil, so if they run out, we have oil to survive with and the other countries will not? Or if the other countries run out of oil, they will have to buy it from the U.S.? These are some questions we should ponder and think about this and see what other people think about these questions for our future generations. The U.S. should be ready and prepared for the future in case they are in dispute with other countries and are not welcomed there, and have no choice but to drill here in the U.S. Since the U.S. uses tons of oil and gas, the people in the U.S. probably only think of what they use in their vehicles or lawnmowers every day and not for anything else like making wind turbines, light bulbs, and electric cars. They think of themselves as using the oil and gas as one person and not as a whole United States using the gas and oil. Our Illinois Senator Dale Righter and the other U.S. Congressmen need to listen to other people who are trying to reduce the dependency on foreign oil and try to support them. Those people may have some good suggestions or ideas, for them to use or try. U.S. Energy Information Administration, “The United States uses nearly 400 million gallons

Modern society will remain dependent on crude oil, even with the development of alternative forms of energy. Oil consumption is vital because many heavy machineries, factories, ships, aircrafts, and automobiles are reliant on crude oil. It is true that efforts are being made (especially within the U.S.) to develop and employ other forms of energy, but, I think that sustainability of such efforts would be a major drawback.

The U.S. Energy Information Administration (2015) reports that the United States consumed approximately 19.4 million barrels of petroleum products daily, which calculated to an overall total of 7.08 billion barrels by the end of 2015 (para. 2). The United States population consumes a huge quantity of oil alone, in addition to all of the other fossil fuels that it also greatly depends on. Fossil fuels are a natural resource that is in limited supply, and they provide an efficient and consistent supply of power to communities all over the planet. Many people are pleased with the short-term advantages these

There are two primary factors influenced the market of energy: population and economic output (Exxon Mobil, www.exxonmobil.com). According to International Energy Agency (International Energy Agency, www.oilmarket.org) global oil product demand will rise up from 84.5 mb/d in 2006 to 86.1 mb/d in 2007, and in forecast for 2030 will grow 1.8% per year. The world oil prices are forecasted to decline from $68 per barrel in 2006 to $49 per barrel in 2014, then rise to $59 per barrel in 2030 ($95 per barrel on a nominal basis). Total world liquids consumption rises to 118 million barrels per day in 2030.

The world is depended on oil and soon oil will become more valuable than gold and could lead to a worldwide war. Price for oil could soar to above two hundred fifty dollars per barrel. Oil and other fuel cell also cause green house gases which contribute to global warming. China is consuming two times more petroleum than 1996 and India is projected to consume three times the oil it currently does by 2050. Global house gas emission has increased by twenty percent from 2003 to 2006. Energy consumption has increased exponentially throughout the globe. The U.S. department of energy projects energy consumption will increase seventy percent from 2003 to 2030. The world has agreed to reduce emission by twenty five percent before 2020 and by over

Peak oil is described as the point in time when the maximum rate of petroleum extraction is reached, and at this point we assist to a diminution of the resource. Oil is one of the world 's most vital resource, we use it in every aspect of our daily lives, we use it for electricity, gasoline and even drugs. The disappearance of this resource can lead to a major global disaster. In an attempt to identify the potential impact of such a disaster and find alternatives energetic resources, a cloud of researchers started to focus their research around this topic. While the first researches made on peak oil where mostly focused on its plausibility, nowadays researches concentrate on determining the exact period of occurrence, as well as the economic and political impact of this event.

World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.