Essay on Environmental Peak Oil

 It is important to understand that different perspectives are associated with the environment and the world can face several issues due to several environmental issues. One of the concepts which can be associated with environmental concerns is the concept of peak oil. This concept was developed from the peak theory of Marion King Hubbert, which hypothetically suggest that there will be a time, when production of the oil will rate its maximum rate of extraction, which means that production of the oil will be as maximum as it can be, and when it will hit this maximum level, then production of the oil start to experience decline. It is vital to understand here that when extraction of oil will continue to meet its demand, but supply will be going down with the passage of time, and at this point, it will be critical to find new oil reserves so that peak oil can be avoided. However, it is elaborated as per the concept that when new reserves will not be available anymore, and exiting ones will be drawn down with the passage of time, then existing oil reserves will be in pressure to deliver demand, which means that peak oil point has been reached. This concept is going around for a while, but still, its hypothetical process is not matured enough into a concrete idea, because new oil extraction methods have been developed over time such as hydraulic fracturing, and these kinds of technologies are helping to find and extract oil from new reserves (KENTON, 2018)

    It certainly is an area of concern for the whole world, because oil production is critical for so many activities performed by humans, playing part in the daily lives. The issue is that if peak oil is achieved at some point in time, then things will turn bad in terms of oil prices. It was suggested that when peak oil is reached, all production resources will be going to their point of ending, so when demand will remain the same, but supply will go down, then oil prices will soar up to unthinkable levels. If it really happens, then it is certainly a big concern for the whole world, because if oil supply will be disrupted by any means, it will have large effects on the oil industry as well as energy policy developed all around the world. But it is important to look at the issue from the past, when peak oil debate was on its peak in the 1970s, and it was told that oil production is going down, and that’s why oil prices are going up. It was also said that the way oil consumption is increasing; soon there will be a time when the world will not have enough oil to meet demand. Nothing substantial happened, as oil prices were being affected by various other factors in this period of time. Now, the debate was again started with the beginning of the 21st century that oil production is quickly going down. Many articles published and books were written on the concept such as “The Half Gone”. But the fact of the matter is that estimates made by researchers have not been proving true, so these estimates are extended further every now and then (Lynch, 2018)

      Looking at the concept, one can say that it is a point of concern, but when facts and figures are analyzed in detail, things do not look as bad as it has been painted for years. The earlier estimates of the depletion of oil production were not proved true, and new estimates are being made, which again can be proved wrong with overall statistics. The oil prices certainly go up and down, but that is not due to its production, but various other political and economic factors, which make an effect on it. For instance, there was a time, when the Iraq war was going one, and the Middle East region also saw some political tensions, the oil prices went up as these regions are one of the largest oil producers in the world (Lynch, 2018). The world should know that as technology is getting advanced over time, new methods of finding oil reserves are introduced, and even more sophisticated methods of oil extraction have been developed and used in the oil extraction industry, which shows that there is no danger of peak oil, looming around the world in near future. Moreover, the world can easily deal with it by finding new production reserves from all parts of the globe, and supply and demand issue can be handled in a balanced way, mitigating the chances of peak oil. The stakeholders can sit together and find viable solutions for this problem, without getting into the trouble (Conca, 2017)

             It is quite interesting that prognosticators of the peak oil have painted a very bad picture of everything to prove that concept is very much a reality, and it is going to happen very soon. They have taken things in a bad state as they talk about peak oil concept by saying that it will happen, as demands will go up to extreme levels, the supply will go down, and there would be social panic kind of situation all around, as if the social structure of the world may collapse, etc. These ideas are very extreme in nature, ignoring the other critical factors. It is important to know that researchers have not proved it much as of now, and it cannot be taken seriously until things are actually at an alarming level. A research study was conducted by the researchers from the University of California-Santa Cruz and Stanford University, and it analyzed all aspects associated with this concept. It is quite interesting to see their findings, as they said that instead of supply, the demand for oil will start to ease out with the passage of time, because the whole world is looking to use alternative energy resources, rather than using oil as a major energy source. The world is also getting efficient in oil use due to technology, and alternative energy resources are being found with the passage of time, which means that things can remain out of danger until a new alternative energy concept is developing and going on. It was also suggested by the study that oil demand will decrease over time, and it will be declining rather than going up by 2035. The good thing is that even developing countries are considering less oil intensive options, and looking for alternative energy resource (GOLDEN, 2013)

         Moreover, it is vital to look at different ways that the world is developing and considering finding alternative energy solutions including energy companies. It is a fact that the most common use of oil is in the energy and automobile industry, but the world is changing its perspective in this regard. There are various methods being adopted to find alternative energy resources so that pressure on oil production is eased out, and the world also uses energy resources, which are not only economical, but they are also great for the environment as well. The oil consumption contributes to pollution and global warming in a variety of ways, so it is also critical to minimize the demand for oil use so that the environment is saved from adverse effects. There are several examples to prove that the world is changing in its thinking approach, and alternative renewable energy resources are being used. For instance, one good example comes from Tesla Company, which is producing cars with renewable energy resources. The electric cars developed by Tesla are giving a new perspective to the stakeholders, and now more automobile companies are considering using it as a competitive strategy. So, peak oil is not a threat, rather the use of oil in an extensive amount is a threat to the environment. The environmental aspects should be taken more seriously as a concern, rather taking peak oil as a major concern (Aviva Investors, 2019)

               The oil, as well as energy companies, is looking to invest in renewable as well as sustainable energy solutions so that demand is met with ease, without reaching any point of danger. There are so many oil companies, which are taking huge steps for sustainable and renewable energy, and three oil companies have been way ahead from other companies including Chevron, BP, and Shell. British Petroleum has made a huge investment by entering into the business of electric vehicle charging, and they have invested in Freewire. On the other hand, Shell captured the attention by buying NewMotion Company, which is an e-mobility firm, and its business is incorporated with the means used for energy efficiency. Moreover, these companies are making great commitments to decrease their carbon footprints, which are great news for the environment, and its sustainability. For instance, Shell has committed that by 20250, it will decrease their overall carbon footprint around 50% (Todd, 2019). Looking at these steps taken by all the stakeholders from all corners of the world, it can be said that things are not as bad, as it has been painted so for, and if everyone will continue to contribute in a positive manner like this, then more renewable and sustainable energy resources will be developed. It means that the world will not face the danger of peak oil because supply will go down with the help of other renewable and sustainable energy resources (Pickl, 2019)

Bibliography of Peak Oils

Aviva Investors. (2019). The future of energy. Retrieved December 8, 2019, from https://www.avivainvestors.com/en-au/views/aiq-investment-thinking/2019/02/the-future-of-energy-peak-oil-and-the-rise-of-renewables/

Conca, J. (2017). No Peak Oil For America Or The World. Retrieved December 8, 2019, from https://www.forbes.com/sites/jamesconca/2017/03/02/no-peak-oil-for-america-or-the-world/#251c62e74220

GOLDEN, M. (2013). Stanford researchers say 'peak oil' concerns should ease. Retrieved December 8, 2019, from https://news.stanford.edu/news/2013/july/peak-oil-supply-070913.html

KENTON, W. (2018). Peak Oil. Retrieved December 8, 2019, from https://www.investopedia.com/terms/p/peak_oil.asp

Lynch, M. (2018). What Ever Happened To Peak Oil? Retrieved December 8, 2019, from https://www.forbes.com/sites/michaellynch/2018/06/29/what-ever-happened-to-peak-oil/#aeca7c3731af

Pickl, M. J. (2019). The renewable energy strategies of oil majors – From oil to energy? Energy Strategy Reviews , 26.

Todd, F. (2019). These three top oil companies are investing heavily in renewables in 2019. Retrieved December 8, 2019, from https://www.nsenergybusiness.com/features/oil-companies-investing-in-renewables-2019/