Lecture 17 | Fossil Fuels | Peak Oil

Peak Oil Case Study, Concepts & Terms

Peak Oil

when 1/2 of earth’s oil extracted and price rises dramatically

Why does it get harder to extract oil after ½ of the reserves have been exploited?

mine easy oil first, costs more to extract harder

Why does demand continue to rise after oil production peaks?

overpopulation

What is the main cause of price increase after we hit Peak Oil?

gap between supply & demand

What caused the increase in gas prices in 2008 to $5/gal in some places?

rising industrialization in china/india

When gas prices rose in 2008, why didn’t OPEC increase the oil supply by a lot?

economies depend on it, sooner oil runs out = sooner economies collapse

Where are we now in relation to Peak Oil? Why?

at it or very close, oil production = 30 billion barrels/year for a while

Given our proximity to Peak Oil, what would be the smart response for societies to take?

plan to replace fossil fuels with alternatives