Compose a 500 words essay on The concept of peak oil has been devised to reflect scarcity associated with oil supplies. But surely the price of oil would be a more efficient indication of its scarcity. Needs to be plagiarism free!
In contrast to the peak oil concept, global oil production showed a decline from its peak point at 74 mb/d in 2005. however, after a short decline the figures rebounded, and in 2011 there were higher production of oil than 2005 (US energy information and administration, 2011). Peak oil is ascertained by taking into account extraction rates from each oil well, the predicted oil reserves, and total extraction rate of an oil field comprising of associated oil wells (Berdellé, 2011). Here the core contentious issue is that the concept of ‘peak oil,’ which had been devised to reflect oil scarcity, is an ambiguous indicator of scarcity. Instead, some economists content that oil prices prove to be a more efficient indication of the scarcity of oil.