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Saturday, December 28, 2013

Former BP Geologist: Peak Oil and Continuous Recession Are Here

A former BP geologist has warned that Peak Oil arrived in 2008 and a world of continuous recession, risk of conflict and hunger lies ahead. The Guardian reports that Dr. Richard G. Miller, who worked for BP from 1985 before retiring in 2008, presented a lecture at the University College London earlier this month on the topic of ‘Geohazards’. The oil industry has been trying to cover up the reality of the situation by telling us that reserves will last 53 years at current rates of consumption. That, however, is not true. The real factor is the rate of production and in that regard we would have to discover production equal to Saudi Arabia every 3 or 4 years in order to maintain and grow supply.

Miller goes on to say that:

New discoveries have not matched consumption since 1986. We are drawing down on our reserves, even though reserves are apparently climbing every year. Reserves are growing due to better technology in old fields, raising the amount we can recover — but production is still falling at 4.1% p.a. [per annum]."

A sustained decline in global conventional production could take place as early as 2020. And, the contribution of shale oil to total production is likely to be insignificant in the larger picture. The world is entering a dangerous place as oil becomes a chokepoint for the entire global economy.

For details, see Former BP geologist: peak oil is here and it will 'break economies'.