'Peak Oil' is the theory that fossil fuel demand will reach a summit at some point in the future. As is the wont of supply and demand forces, peak demand will necessarily bring about supply shortage and steep prices. The proponents of this theory believe that worldwide peak of oil production will be reached. In the US, analysts predict the situation will arise sooner, if not for the mitigating effects of shale and natural gas production.
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David Blackmon, writer of this Forbes article thinks otherwise. He points out that as fracking activities increase with the discovery of more oil shale reservoirs in the United States, the ‘Peak Oil’ theory no longer holds. He explains that the ‘Peak Oil’ theory came into widespread acceptance in the oil and gas environment, but is now on the brink of extinction when the global market shifted interest in massive oil shale reservoirs. The rise of hydraulic fracturing has largely defused the near-apocalyptic scenario put forward by Peak Oil theorists.
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The article further notes that ‘Peak Oil’ advocates have largely disregarded the role that technology plays in discovering untapped oil resources, accessing known but previously unexploitable resources, and extracting oil through secondary and tertiary recovery techniques. He also attacks the obstinacy of “Peak Oil” advocates in their belief in the fixity of oil and gas resources.
British Petroleum’s chief executive Bob Dudley could not have agreed more with this write-up when he said that the warnings that the world is headed for ‘Peak Oil’ are becoming increasingly unreasonable.
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Learn more about hydraulic fracturing and the energy sector by following this Twitter page for Dr. Ali Ghalambor. Dr. Ghalambor has been contributing to the education of students and professionals worldwide about the efficient production of natural gas.