In our May 20, 2015 article, we wrote that “Concerns and worry about Peak Oil are overstated and irrelevant.” The article concluded, “With crude oil supplies increasing and the demand for crude oil slowing, and likely to continue to slow more, demand for crude oil will peak long before dwindling supplies of crude oil become a concern.” Read the full Avalon Energy Peak Oil article here.
Yesterday, eighteen months later, the Wall Street Journal reported that major and state-owned oil companies are beginning to plan for the “mind-bending scenario” when global oil consumption crests and begins a permanent decline. In response to this “peak oil demand,” these companies are beginning to increase their investments in petrochemicals, natural gas, cost reduction and alternative energy sources like solar and biofuels.
And, no less an industry player than Saudi Arabia is at the forefront of this trend. Saudi Arabia’s energy minister, Khalid al Falih is quoted in the WSJ article as stating at a recent conference, “Peak demand will be later than the common dates that are being thrown around, but if it does happen, because we’re building multiple engines for the economy and we’re planning for an economy beyond oil, we’ll be ready.”
A dramatic turn of events. Predictable, but dramatic nonetheless.
Reference – “Oil Firms Anticipate Day of Reckoning,” The Wall Street Journal, November 28, 2016.
Evelyn Teel contributed to this article.
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