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The Future of Oil - This week's cover story in Money Week

Posted: 25 Aug 2006, 13:00
by SarahSimcock
http://www.moneyweek.com/file/11557/latest-issue.html

Article about investing - but which has a sound understanding of Peak Oil
Peak Oil ? the theory that we are very
close to, or have perhaps even passed, the
point where we are pumping the maximum
amount of oil possible from the
earth ? has moved from being a fringe
concern of eco-warriors and conspiracy
theorists, to becoming generally accepted
by the mainstream oil industry. The
details are still a matter of debate, but
few people doubt that it will happen. The
question is when. Some believe the peak
has already been reached. Most disagree,
but even the optimists reckon we?ll run
out of easy oil within about 30 years.
The point to understand
about Peak Oil is this: it?s the cheap oil
we?re running out of, not oil itself.
Yes, getting oil out of the ground is
getting harder and more expensive ?
some of the regions with the most
plentiful alternative oil reserves will cost
ten times the amount per barrel that it
costs to get at Middle Eastern reserves.
But with prices sitting at more than $70
a barrel, there?s plenty of incentive for
us to turn to these different sources.