What does the term "peak oil" mean?
1 Answer
It was coined to mean the point in time at which the maximum extraction of oil from the earth was reached.
Explanation:
It means that before the “peak” there were always more unknown reserves of oil to be found. After the peak, all known sources we assumed to be known, and all additional extraction would ultimately lead to the complete depletion of all oil resources.
It is primarily an academic concept, as we do not really know the extent of further oil reservoirs. It also requires the assumption that oil would be extracted regardless of other economic impacts or competing technologies.
It is meant primarily as a “scare tactic” to reduce oil extraction rates, but has been largely unsuccessful in affecting the strategic and tactical plans of energy companies.
