In 1956 a geologist, M. King Hubbert, set in motion a hypothesis, often referred to as a theory, that oil production would peak and that after the peak, there would be a diminishing supply of oil throughout the world.
Many subscribed to this hypothesis and published articles and books promoting the concept. There are even web sites devoted to promoting the idea that we would be running out of oil.
Hubbert originally based his hypothesis on what was happening in Texas in the 1950s, where Texas oil production was declining.
The idea that we would run out of oil was part and parcel of Malthusian thinking, that the world only has finite resources. While Malthusian thinking has been consistently debunked, it serves the purpose of those who would like to control the economy.
In the Malthusian view, government must control the use of resources so they may be evenly distributed to people around the world.
Malthusian thinking is anathema to those who believe that science and mankind can develop more resources, or alternatives to any resources that may be in dwindling supply, so that the economy can continue to grow for the benefit of all mankind.
The free market has consistently shown that it is superior to Malthusian thinking and government control.
Now Hubbert’s “Peak Oil” hypothesis goes the way of all Malthusian thought.
“Peak Oil” is dead.
It has been killed by the free market and innovation.
Initially, development of oil from deep under the sea undermined the peak oil hypothesis.
Now, innovators have developed fracking to extract natural gas and oil from shale.
Fracking has made huge supplies of oil and natural gas available in the United States and around the world.
Today, the United States has, within its grasp, the ability to become self sufficient in the production of oil.
There are many countries around the world, besides the United States, where there are large shale basins that can produce oil and natural gas.
The EIA has identified China, Argentina, Canada, South Africa and Australia, besides the United States, as having large technically recoverable oil and natural gas resources. Even Europe has some, as does Russia.
“Peak Oil” is dead, though there will be people who will continue to flog a dead horse to promote their political agendas.
“Peak Oil” is finished for this century, and probably the next.
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