Oil Demand : Did The Oil Save The Whales

In terms of oil dependence, most of the general public believes that the world has enough oil to support us for the next hundred years; in truth we are rapidly depleting our petroleum sources due to the increasing population and demand. In fact, as was initially theorized by the Hubbert Peak Theory in 1950, Earth peaked in oil supplies in 1973 and the largest oil resources that have been discovered since then have been in Venezuela and Saudi Arabia. Here it must be

One of the main subjects this documentary talks about is the "peak oil" phenomenon. According to many geoscientists, geologists and other members of the scientific community, oil production is supposed to peak. After this peak, we should start to see production drop as the oil becomes harder to extract and refine. Some think that we have already peaked, others think that production is currently peaking. Recently, there have also been some people in the financial industry who are saying that the peak oil

The reason of the fall in oil prices are the constant change of demand. The need for the oil is actually stagnant. Crude oil is becoming a product of the past. Today, you can harvest energy from solar, wind, water, heat, and waves. According to The Economist, “The use of fossil fuels in the rich world is mostly falling. Emerging economies are not currently taking up the slack”.

The consumption of the oil cause changes in the supply and demand. The United States produces 11 million barrels of oil every day. We are one of the biggest countries to have a big influence on the production and prices of the oil. The basic supply and demand theory explains that the if a product is produced more, the cheaper it should sell. If a country were to double the output of oil day, prices would fall and the Production is high, but the distribution of oil isn’t keeping up with the market. The United States builds an average of one oil refinery per 10 years. This is a net loss due to the fact construction has slowed down since 1970s. Since 1970s, the United States has 8 less oil refineries today. The reason why we are not oversupplied with cheap oil is because of the other countries’ higher net margin and the only operate at 62% of their capacity. Excess capacity is only there to meet future demand. With demand moving accordingly, oil prices will continue to be set mostly by the market — despite external players’ best efforts. (McFarlane)

[Oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.” (Koch par. 2)]

The term “peak oil” refers to the point when oil production reaches its maximum rate and then its production gradually decreases. There is no doubt that having cities as peak oils will drastically affect many lives. But what exactly are the effects of peak oil? There are many effects that could possibly end the lives of many. One would be that peak oil will affect health services. The Gross Domestic Product or simply the GDP will decline as a result of peak oil. When the GDP declines, it will affect what communities can spend on health care and other social health activities and programs. Most models of health care provisions depend on cheap fossil fuels. Since peak oil will decrease the quantity of oil and as a result increase the prices,

Oil production is crucial for humans. Overall, 33 out of 48 countries have now hit a peak in oil production, resulting that oil is going to hit a decline in production. This peak is in countries such as Mexico and Russia, potentially signifying the end of the Industrial revolution. However, oil itself is not running out, just the rich, thick oils, that are high quality. In the near future, the only oil that Earth will have will be thin, and not good enough to use in motor vehicles or for electricity. Additionally, cheap and easy to extract oil will be at a decline, and also oil will be in unaccessible places, or within dangerous areas. Oil production needs to stay at pace with the human demand.

It is estimated that 1.3 trillion barrels of oil reserve is left in the world’s major fields (Institution of Mechanical Engineers 2015). At present rates of consumption this will be enough oil to last approximately 40 years. By 2040, it is intended for production levels may be down to 15 million barrels per day which is approximately 20% of the amount of oil which is currently being consumed (Institution of Mechanical Engineers 2015). It is likely by the year 2040 that the world’s population will be twice as large (United States Census Bureau 2015). Additionally, it is likely that more of the world will be industrialized and therefore more dependent upon oil.

Although its been said that we may only use oil for 10 to 15 more years before we hit our peak, If it is conserved it can be used for many more. Even though I believe it isn’t going to be conserved and never will be, it is a possibility. (Oil Shale and Tar Sands Program, 2012)

ing that a few decades onwards, there is the possibility of oil becoming a secondary energy source,

The growing oil scarcity in the early 21st Century and its possible implications on the global economy, including economic growth, inflation, food security and poverty, is a subject that has been widely well known and discussed by a plethora of scientists and economists. Peak oil, a term coined by M. King Hubbert in 1965, is generally defined as “the time in our history when world oil production will reach its all-time peak and begin to incline forever”(Hirsch et al., 2005). By their finite nature, there is no argument over whether fossil fuels – oil, gas and coal – will go scarce, but rather when this will occur, whether alternative energy supplies will meet the ever-increasing demand, and how best to oversee such a transition. The failure to do so could result in a profound word-wide economic crisis leading to lower economic standards in developed and developing countries alike. Cuba, one of the only countries that has faced such a crisis yet, is an example of options and hope.

The world is depended on oil and soon oil will become more valuable than gold and could lead to a worldwide war. Price for oil could soar to above two hundred fifty dollars per barrel. Oil and other fuel cell also cause green house gases which contribute to global warming. China is consuming two times more petroleum than 1996 and India is projected to consume three times the oil it currently does by 2050. Global house gas emission has increased by twenty percent from 2003 to 2006. Energy consumption has increased exponentially throughout the globe. The U.S. department of energy projects energy consumption will increase seventy percent from 2003 to 2030. The world has agreed to reduce emission by twenty five percent before 2020 and by over

Peak oil is described as the point in time when the maximum rate of petroleum extraction is reached, and at this point we assist to a diminution of the resource. Oil is one of the world 's most vital resource, we use it in every aspect of our daily lives, we use it for electricity, gasoline and even drugs. The disappearance of this resource can lead to a major global disaster. In an attempt to identify the potential impact of such a disaster and find alternatives energetic resources, a cloud of researchers started to focus their research around this topic. While the first researches made on peak oil where mostly focused on its plausibility, nowadays researches concentrate on determining the exact period of occurrence, as well as the economic and political impact of this event.

World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.

Because private companies and nations have over-estimated oil reserves it is difficult to be exact but these estimates of world oil reserves are close and further research will reflect this. Also, rapid exploitation may have damaged many reserves' wells and will limit production. It may be that we (the world) have much less than is believed! The United States past its "peak oil" point back in the early 1970's ( for further research refer to Peak Oil Crisis Books) and now imports about two-thirds (2/3) of its oil. The U.S. economy and the current American way of life is supported by energy from other nations. Those nations that have not already past peak oil (maximum production) are very near it. In the future, production will decrease while at the same time demand increases. The spread between supply and demand will cause higher prices (for all products),