The world's oil production is critically dependent on the production fromthe world's largest fields, most of which are over 40 years old.  Nearly ahalf of the world's oil is extracted from the top 120 producing fields;with the largest one delivering 4.5 million barrels a day, and the othertop three barely exceeding one million barrels in daily production.

The world consumes one billion barrels of oil each 12 days and discoversabout 8 billion barrels each year in a declining trend. Thus the rest ofthe consumption must come from the old declining fields. In 1970, when
only one quarter of the world's original oil endowment had been used up,and the crises of that period had political origins. Today about half ofworld's oil has been consumed, and the bell shaped production historysuggests that peak production is at hand. Hence the looming crisis is
today caused by increasing scarcity of natural resources.

 

Oil scarcity is likely to influence the transportation sector first, as isalready evident in the airline industry. Although natural gas production can be increased another 25 years, the end for them is also in sight.

SEE MORE & MORE>>

<<PREVIOUS                   NEXT>>