I haven't heard anything from Matt Simmons in a while, so I was quite surprised when reading an entry on Henry Blodget's new finance blog to see that his was the first response. Also amusing that the subject was Arun Murti (weren't we just talking about those two last week?)
Here's his response:
You really should research your terminology before you drop it about in your articles.
"On the supply side, we don't subscribe to the peak-oil view. We don't think the world has run out of oil."
Definition of Peak Oil:
"Peak oil, as part of the fossil fuel depletion, is the point in time when the maximum rate of global petroleum production is reached, after which the rate of production enters its terminal decline."
source - wikipedia.org
Peak Oil is about the "Peak" in oil production... we sir have peaked, we did so in 2006. We are in what's called an undulating plateau and will soon enter a irreversible decline in oil production.
We will NEVER run out of oil, we simply will run out of CHEAP oil... easy to find and produce oil... I hope this sinks in clearly.
We discovered oil, found large deposits of oil and we produced those first, they were the easiest to get at. Most of those fields are in decline now, we're now going after the more difficult, smaller deposits...
Please go to www.theoildrum.com and do a bit of reading.
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