In recent posts I have identified the growing issues of declining energy reserves and those countries and firms seeking to protect their self-interests. Clearly, the oil industry is facing uncertain times, not just in terms of the declining reserves, but also in light of rapidly changing technologies and expectations in terms of the environment.
The state of oil production is beginning to cause alarm. Oil production peaked during 2006 with global oil production from mature oil fields now declining at a rate of between 6-7% per year. Oil is becoming more difficult, expensive and energy intensive to extract. The Peak Oil Crisis website has real time clocks of global oil consumption and graphics illustrating the impending crisis as well as articles, graphics and links to industry articles. Countries reliant on oil imports are desperately seeking new oil and gas sources with global oil companies jockeying for position to extract any new reserves found. Power politics are coming to the fore and environmental organisations are increasingly concerned about the ramifications of the rush for oil on the global environment as multinational oil giants seek out previously untapped reserves in the remotest of regions.
