Running Out? Peak Theories Exposed
The concept of peak oil has captured the imaginations of policymakers, analysts, researchers, and the public. But from the viewpoint of the energy economist, the idea of a peaking resource, such as oil, ushering in an era of reduced growth and hardship, doesn't hold water. Energy economist Dr. James Smith of SMU Cox provides calculations in new research which show that the "Peak" is an unreliable indicator of resource scarcity, particularly for oil markets governed by the fundamentals of price, supply, and demand. While the idea of peaking may offer some indication of scarcity, it cannot be relied upon to draw firm conclusions.