Did the global oil supply peak already in 2004, 2008, or will it peak in 10 years? According to Dr. Fatih Birol from IEA (International Energy Agency), the peak is about 10 years earlier than previously estimated, i.e. 10 years from now. In an interview by the Independent, Dr. Birol says the following: "the public and many governments appeared to be oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years – at least a decade earlier than most governments had estimated."

The article contnues:"But the first detailed assessment of more than 800 oil fields in the world, covering three quarters of global reserves, has found that most of the biggest fields have already peaked and that the rate of decline in oil production is now running at nearly twice the pace as calculated just two years ago." Many people who commented the article provided proof of oil peak already taken place in the past. In any case, we are heading towards a wall, and fast.


                                                                

If that wasn't enough bad news, as oil sources get scarcer, its price is increasing. Because all economies are still dependent on oil, barrel that costs more than 70 dollars will have a negative impact to world economy. Saudi-Arabia has predicted that a barrel will cost 75 dollars by the end of the year. There's a positive congruence between oil price and stock prices. Any green shoots in the economy will raise oil price. OIl is also positively tied with inflation. Let's cross our fingers for no inflation after the recession starts to losen grip.

Sources: The Independent, Kauppalehti