More news about Peak Oil today:
“Speaking in a Senate committee hearing, the legendary Texas oilman T. Boone Pickens said that world crude oil production has topped out.
‘I do believe you have peaked out at 85 million barrels a day globally,’ he told the Senate Energy and Natural Resources Committee Tuesday, according to Reuters.
He noted that the United States is consuming ‘21 million barrels of the 85 million and producing about 7 of the 21, so if I could take just a minute on this point, the demand is about 86.4 million barrels a day, and when the demand is greater than the supply, the price has to go up until it kills demand.’
And when Mr. Pickens speaks about energy, the world listens. His ability to read markets has vaulted him into the ranks of the world’s wealthiest people. His hedge fund, BP Capital, manages more than $4 billion in assets.”
Read the full article here.
Do read the linked Hirsch report as well. There’s news today that some analysts think that oil prices will return to $30/bbl by 2010. I’m not sure how they reason that, but I’m concerned that given the American public’s propensity for denial, this sort of projection will merely frustrate any attempt to respond to the growing shortage of oil relative to demand – and any delay in our response is going to be a huge strategic blunder.