Explain and evaluate, using referenced evidence and data what the peak oil or peak coal or peak gas is. You should explain whether this concept is cause for concern or whether humanity can find ways around this problem. Provide evidence to justify your position and provide different perspectives on this issue.

Peak oil

Peak oil is the point or level when the extraction of oil reached at maximum point in the industry. The maximum level could be recline after touching the maximum level. Peak oil is forecasted in the early of 2020s and 2040s which most likely based on the economic and political condition in the country. It is often confused with the term oil depletion which cause decrease in the supply of oil which refers to the term reversing the supply of the oil in the economy. The concept of oil peak was derived by the geologist in 1956 which approved as a valid theory about a subject. Some experts anticipate that there may be adverse effect on the economy after peak production which will decrease the oil prices as the supply of oil is in excess due to which economy has to face negative impact on the economy. Prediction was about the peak oil was not good as it is going to create a lot of problems for the economy to get the stability in the market. There may be risk in the economy which may cause of crisis in the market which could occur in the coming decade and these predictions are most likely to be proved as wrong in the market. As it may increase the prices of oil. The average annual production peaked in the market within the three decades (Murphy & Hall., 2011).

The presence of oil extractions in different methods which are used by the petroleum geologist. There may be political, social and economic impact on the economy due to peak oil when it would be happen in the economy which will increase the supply in the market and prices will fall down which collapse the market and there may be adverse condition in the market. It may create different impact on the humanity such as reduction in economic activity, inflation, unemployment and situation of conflict. Peak oil situation may cause of recession in the industry of oil and gas which also impact on the economy. There may be shocks in the price which could be disturbance in the supply and demand and this could be due to the uncertainty of the prices due to geological and political factors in the market. These oil price shocks could create inflation in the market. Increase oil prices before the oil peak could also increase the prices of relevant commodities which could be measured by the consumer price index. Oil shocks and inflation could increase within the hand of the consumers (Almeida & Silva., 2009).

Recession in the economy by whatever cause which could be reason of loss of employment opportunity which should be understood that the prices which could be decrease in the consumption which is a problem for the jobless. Peak oil may also increase the pollution in the environment as the extraction of oil will increase there may be more pollution in the economy. There may be problem like smog and air pollution due to the smoke of oil refineries which could also effects the health of public. There is also has chances to face the situation of conflict by the humanity as there may be economic shocks in the economy which creates diplomatic relations between economy and public. There may be different perspective as the peak oil is cause of carbon emission in the air and could affect the climate policy which is based on the energy prices. Active policies for treating the emission with the utilization of fossil fuel as energy in the market. As there are many resources which are used to evaluate the energy in the country there must be ignorance about the consequence of the energy production. There must be greater need to control the adverse effect of pollution in the market causing bad effects by the extraction of oil (Chapman, 2014).

Part b: Critically assess the strategies energy companies can pursue to promote sustainability in the face of peak oil, peak gas, and peak coal. 

There are different strategies which are perused to promote the sustainability in the issue of peak oil. There must be increase in cost while extracting the oil. Different oil companies are working on different strategies which are strictly followed by the organization to gain the sustainability in the market. It could be helpful to gain the valuable services in the market so that the development could be organized in well manner way in the different situation such as peak oil. It also includes to deal with the oil extraction which is used to reduce emission in the air. The strategies are used to reduce the carbon emission in the air which is beneficial for the stakeholders in the market. There is diversification in the strategies which are used in the long term activities in the extraction of oil. Strategic management analysis is used to check the severity of the oil peak issues in the market. There may be system changing for the sustainability to emerge the innovative dilemmas. These strategies could be renewed to check the major focus on the extraction of oil. There may be different strategies which could be adopted by the company explained below with the critical review of the strategies:

Supply chain management:

Company could adopt supply chain management in the supply of oil which prepare a suitable quantity of the supply as there may not excess in the supply and prices could not be increased in the market. But with the same strategy there must be difficulty to handle the supply chain management as there are series of people and agents who are engaged in the process.

Pollution control

There should be proper use of chimneys which could be filter the smoke of factories and oil refineries as to gat peak position in the market there must be more production of oil and it could increase the pollution companies used different methodologies such as balance in production and use of chimneys.

Increase demand

To avoid the level of peak there must be increasing demand of oil which could be possible with the number of vehicles in the country. As it is a good option to increase the demand but there will also be increase in the pollution as the number of increased vehicles also increase the smog in the air.  

These are strategies which could be implemented by the oil companies to avoid the consequences of the oil peak and increase the demand for renewable energy in the market. The strategies are response to the anticipated assuming that it owns a big portion in the market. These strategies are applicable with the help of different companies such as Royal Dutch shell and Total which are considered as main bodies of oil industry working in different companies. The objectives of the developing strategies to change the portfolios which includes the work of oil industry in the slow pace to gain the sustainability in the market. The change in the strategies could be resulted in the different direction of the company. There must be balance in the producing oil and hydrocarbon in the energy production with sustainability. There must be strategy for risk evaluation in the market, so that these strategies could be implemented in smooth way. Personally I recommend to the oil industry that diversified strategies should be used in the issues of peak oil so that it could be easy for the companies to gain the sustainability in the situation of peak. The existing energy investment in the sustaining energy as well as diversification of energy. Both situation requires implementation of the strategies in the company to get competitive advantages (Murphy P. , 2008).

References of PEAK OIL

Almeida, P. D., & Silva., P. D. (2009). The peak of oil production—Timings and market recognition. Energy Policy,, 37(4), 1267-1276.

Chapman, I. (2014). The end of Peak Oil? Why this topic is still relevant despite recent denials. Energy Policy, 64, 93-101.

Murphy, D. J., & Hall., C. A. (2011). Energy return on investment, peak oil, and the end of economic growth. Annals of the New York Academy of Sciences,, 1219(1), 52.

Murphy, P. (2008). Plan C: community survival strategies for peak oil and climate change. New Society Publishers.