BACC Editor on Tuesday, 16 November 2010 00:22

Peak Oil is Past

The International Energy Agency’s annual report, issued earlier this month, suggests that peak oil production occurred in 2006. As global demand increases and production gets ever more costly, prices of $135 a barrel are projected 25 years out. To mitigate increasing costs and scarcity it is critical to take action now on promoting renewable energy sources and alternative fuel vehicles.

“The size of ultimately recoverable resources of both conventional and unconventional oil is a major source of uncertainty for the long-term outlook for world oil production,” the International Energy Agency report concludes.

Over all, oil prices should continue to climb in coming decades, reaching $135 a barrel by 2035, a price level that some economists believe contributed to the global economic collapse of 2008. Some experts found the report’s projections troubling.

International Energy Agency

This projection of world oil supply only underscores that there will be no better time to diversify our energy portfolios with renewable sources, electrify our fleets or upgrade our buildings for energy efficiency.