ABSTRACT
This chapter discusses the recurrent concern about ‘peak oil’ from a geological, economic and political perspective and the interaction with the management of the oil market through the Organization of Petroleum Exporting Countries (OPEC), with a concern about ‘peak oil demand’. The underlying sentiment is fear of scarcity, a concern about supply security, and ultimately the terror of oil drying up and supplies dwindling, i.e. ‘peak oil’. The discussion of peak oil often ends in apocalyptic visions of widespread disaster as demand for oil outstrips supply. OPEC is an interest organization for major oil exporters, established in 1960 to coordinate the taxation of foreign oil companies. The word is that the world is in the middle of an oil age. It is important to distinguish between absolute and relative figures; even if oil’s market share declines, a relative figure, oil volumes consumed increase in absolute figures.
