Report states oil production could hit peak point soon

A recent report states that the global production of oil that is conventionally extracted, could reduce in the coming decade. The report which was put forth by the UK Energy Research Council said that the production of oil faces a terminal decline prior to 2020. However, it seems that the Government was not ready to face the risk.

Decrease in the production of oil will eventually lead to more volatile and higher prices which could boost the investment in more polluting fossil fuels like tar sands.

The report claims that less than half of the earth’s conventionally extracted oil has been used up. However, extracting the remaining resources from under the ground will be more expensive and difficult. This will slow down production and at the same time increase the rates of crude oil.

Current exploitation of the oil reserves on the planet are running at over 80m barrels a day. This means that even new key discoveries like the oil fields which were found in the Gulf of Mexico recently would postpone the peak only by a few days or weeks.

This means that as oil prices increase, people will have to look for cheaper alternatives, especially when it comes to travelling. The use of fuel cards has already increased and it seems like more people are going to invest in fuel cards in order to help cut costs.