‘PEAK OIL’ EXERCISE ANSWER PARAMETERS
Peak oil is the point, in the case of an individual field or reservoir where the optimum output of production in terms of recoverable hydrocarbon takes place. After this volumes will enter into terminal decline. Same concept for the global perspective.
Determining Factors:
Global population growth – increased demand – faster depletion
Overall levels of reserves available
Overall levels of supply – control of supply (NOC’s); influence of cartels; nationalisation
Rate of new discoveries
Unconventional resources
Alternative energies
Uncertainties:
Length of time for development
Performance/availability of new technologies
Cost
Break-even point
Remote environments - extraction/operational difficulties and challenges/stakeholder expectations/environmental issues
Political instability
Concerns of accuracy of stated reserves
Not knowing whether any decline in global reserves will be either supply driven or demand driven
Actions of OPEC
Length of time for development
Performance/availability of new technologies
Cost
Break-even point
Remote environments - extraction/operational difficulties and challenges/stakeholder expectations/environmental issues
Political instability
Concerns of accuracy of stated reserves
Not knowing whether any decline in global reserves will be either supply driven or demand driven
Actions of OPEC
