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Oilman T.Boone Pickens Says Peak Oil is Here

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Via the Christian Science Monitor:

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.

This is about a year and a half old, but the trends Mr. Pickens identified have only progressed since he made his pronouncement. The Obama Administration, on the other hand, refuses to believe in the “Peak Oil theory”, instead plumping for something called the “undulating plateau”, which has absolutely no scientific basis. So naturally, he’s doing nothing about reducing our reliance on liquid fuels.

Folks, we are in a lot of trouble.

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Written by pavanvan

March 30, 2010 at 9:45 am

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