The world’s “supermajor” independent oil companies — BP, ExxonMobil, Chevron, Royal Dutch Shell, and Total — project a rosy future, assuring us that oil will be abundant for decades to come. But in fact they’re spending record amounts to keep oil flowing, while their production is actually falling.
The BP Energy Outlook 2030, released in January 2013, confidently asserts that oil production will keep pace with demand. Through 2030, it projects, “More than half of the growth will come from non-OPEC sources, with rising production from U.S. tight oil, Canadian oil sands, Brazilian deepwater and biofuels more than offsetting mature declines elsewhere.” Indeed, BP says, the “once-accepted wisdom has been turned on its head. Fears over oil running out –- to which BP has never subscribed –- appear increasingly groundless.” Peak oil was never about “running out.” That’s a strawman argument. The word “peak” in peak oil simply refers to the maximum production rate of oil, as I have explained ad nauseam. While oil producers constantly trumpet new discoveries and rising reserves, they tend to avoid talking about production rates.
But reserves are meaningless if they don’t amount to an increasing rate of production. If you had a billion dollars to your name, but could only withdraw $1,000 a year, would you be worried about running out of money or paying your bills?
... Oil majors are whistling past the graveyard | SmartPlanet http://www.smartplanet.com/blog/take/oil-majors-are-whistling-past-the-graveyard/584