Peak Oil

I recently stumbled upon something known as Peak Oil. Peak Oil is an industry term used when oil production is at the top of curve. All oil production follows a bell curve, whether in an individual field or on the planet as a whole. On the up slope of the curve, production costs are significantly lower than on the down slope when extra effort (expense) is required to extract oil from reservoirs that are emptying out.

This is not something new but average people like you and me will not know or even bother with. However, according to what I read regarding Peak Oil is that it could already be happening now. The implication of Peak Oil is very far reaching as today everything depends on oil. Basically, the worlds economy is oil driven. When oil prices continue to rise, everything will be affected. So, expect that the cost of petrol to continue to rise.

Although the world oil reserve could last us for another 20 years or so (it could be less because OPEC could be lying in the way they present their oil reserves), some extremely pessimistic people are already crying that dooms day is near. Some site like Life After the Oil Crash and The End of the Road presents some very pessimistic view. Most of these site focuses the impact from the perpective of the U.S. That's because the U.S. is the largest consumer of Oil, so if Peak Oil happens it will impact them the most and will cause a ripple effect to the worlds economies. Although, what they present is very true regarding the energy crisis, I disagree with their view on alternate energy.

Iceland today is at the forefront of alternate energy usage. They are ahead of the rest of the world on alternate energy usage. They plan to totally eliminate dependence on oil in another 20-30 years and transformed their economy into a Hydrogen Economy. They have recently open the worlds first hydrogen station. They could also be a major exporter of hydrogen in the future making Iceland the Kuwait of the north.

Lets just pray!