What is Peak Oil?

What is 'Peak Oil'? You may have heard the phrase recently on the news, or as a buzz word among groups of environmentalists and scientists. You will have noticed that some groups believe it, and others dismiss it. Whether it is 'real' or not, it is most definitely affecting the price of petrol.

'Peal Oil' is a theory about the amount of crude oil and gas on Earth. It is simple enough to understand: there is only a limited quantity. As our technology becomes more efficient at extracting oil, we will be bale to extract it from the Earth at a faster and faster rate, but as we do so the remaining oil will become rarer and rarer. A time will come when our civilisation reaches a maximum rate of oil extraction, after which oil extraction will drop as we begin to run out of oil. This point of maximum extraction is known as 'Peak Oil'.

That's simple enough, but what does it actually mean for you and me? Firstly, the cost of petrol will increase. Then it will increase again, and continue to do so. This will affect the cost of food and goods- nearly everything we use either has petrol products used in its creation or its transport. With the cost of living increasing there will be a decrease in the standard of living, and a huge effect on society.

Is it a realistic theory? In short, yes it is. The Earth has a defined volume, and only a limited percent of that is oil. We are extracting and using oil faster than it is being formed: the oil we mine today is thought to have formed somewhere between 10 and 160 million years ago on the ocean floor. If you consider the rate at which we use oil, and the rate at which it forms, it's pretty obvious that at some point we are going to run out. Peal Oil is coming.