King Hubbert’s thoughts on peak oil have caused a lot of ripple effects in the perception of the oil and gas industry. The idea that we’ll reach a maximum rate of petroleum extraction has lead to a lot of theories as to what will happen, as well as a lot of misconceptions. Outlined below are a few of them.
There’s Going To Be A Steep Decline In Production After Peak Oil
The beliefs about the future of Peak Oil are various. Not everyone believes in a doomsday scenario after oil depletes beyond a certain point. Some actually believe it’s going to make the world a cleaner place with tighter communities as we become less dependent on oil.
There are also those who think peak oil would lead to dirtier environments since we’ll start burning more coal to replace oil, as well as those who think there will only be minor inconveniences.
Peak Oil Is A Theory
Peak Oil doesn’t mean we’re about to run out of oil at any second, it just means that as American oil production peaked during the 70’s, the same thing will happen globally as well. By the time we’re done using oil, much of it will still be left in the ground.
When we think about peak oil this way, and not in the sense that it means we’re going to run out of oil, basically everyone agrees that peak oil is very much happening.
Peak Oil Is Denied By Oil Companies Because They’re Scared
Basically, all the major oil companies are developing technology for alternative energy. It’s not like they’re all sitting around doing nothing while they rake in the profits. They’re not worried about the alternative energy industry because they’re in it themselves.