Peak Oil The Hubbert peak theory posits that for any given geographical area, from an individual oil field to the planet as a whole, the rate of petroleum production tends to follow a bell-shaped curve. Early in the curve or pre-peak, the production rate increases due to an increase in the discovery rate of oil deposits and the addition of infrastructure. Late in the curve or post-peak, the production rate declines due to resource depletion.

The Hubbert peak theory is based on the fundamental observation that the amount of oil under the ground is finite. Peak Oil refers to the peak of the entire planet’s oil production. After Peak Oil, according to the Hubbert peak theory, the rate of oil production on earth will enter a terminal decline.

At present, many experts still debate whether “peak oil is dead” (Washington Post, 2013). In short, some analysts declare its departure since new technologies are now being used to extract crude from hard-to-reach sources (e.g., from tar sands of Alberta to North Dakota), “and after decades of decline, United States (US) oil production has risen to its highest levels since the 1900s,” says Brad Plumer of the Washington Post.

Not everyone’s convinced, however, that oil is really on the verge of a new boom. Energy analyst, Chris Nelder, for one, argues that “our new found resources aren’t nearly as promising as they first appear. And Peak Oil is still as relevant as ever.” He goes on to say that, “there has always been a lot of confusion about this point. Peak Oil has always referred to the production rate of oil – it’s about finding the point where that production rate peaks” (Washington Post, 2013).

Nonetheless, Plumer states that all agreed that we would hit an absolute peak in a specific year (sometime after 2005) and global oil production will stop growing (Washington Post, 2013).

Given my research