Oil - Final Thoughts

To summarise this focus section on oil I am just going to do a quick recap of the information I have looked at and make draw some conclusions about what part oil will play in supplying energy over the next few decades.

Opportunities for oil production 

• Increasing population growth and wealth means that the demand for energy is continuing to grow. Data from Allianz predicts that the global population will reach 9 billion by 2050. Furthermore, research by Stanford University predicts that global energy demand will continue to rise from 80 billion barrels of oil in 2020 to 100 billion barrels of oil in 2050 (Changing the World's Energy Systems, Stanford, 2012).  
• Developments in drilling technology allow oil companies to explore previously inaccessible reservoirs of oil. This includes deepwater locations such as in Asia and Arctic environments (Oil Developments, 2013 Summary). In addition, advancement in ground imaging are also really vital in locating previously unknown deposits (CGG, Seismic Overview). 

Threats to oil production

• Growth of other energy industries such as coal and development of new energy industries such as hydraulic fracking and renewables have increased competition for oil producers. A lot of research suggests that for many locations, outside of the OPEC countries, peak oil production occurred between 2000 and 2005. This is mainly because the price of an oil barrel tripled from $35 to over $100 making it less competitive (Kerr, Science, 2013).
• Increasing regulation of oil production also increases the price per barrel, further reducing the competitiveness of oil. Disasters such as the DeepWater Horizon and increasing public awareness of the threat to the environment in areas such as the Arctic mean that governments are looking to invest in other energy sources where possible (Huber, Economic Geography 2013). Emphasis on the "where possible"!

Conclusions...

Oil will continue to play a significant part in our energy supply over the next century, despite growing adverse public opinion and enthronement impacts. Improvements in drilling and seismic imaging will allow companies to tap previously inaccessible resources and governments will continue to support oil companies while the price remains competitive. I agree with the wealth of data that suggests that we have already reached peak oil production and that the increasing cost per barrel will be the sole determining factor in the demise of oil production.