Exxon, Shell Both Essentially Admit Peak Oil Is Upon Us - Or Will Be Soon
Two today on peak oil and how the big oil companies are finally publicly (if quietly) coming around to what peak oil researchers have been saying for a while: It's here, or will be shortly.
First, Wall Street Journal highlights how ExxonMobil is having a hard time finding new oil and has had a hard time for a while now. For the past 10 years for every 100 barrels it's extracted it's only been able to find 95 more. Natural gas exploration on the other hand has been very successful--enter, fracking. Second, Raw Story sums up a report by Shell that at best "does not paint a rosy outlook."
Shell predicts in clear terms what journalist Michael Rupert said in his recent film Collapse: more shocks to the industry loom ahead, which will lead to increased price volatility, producing rapid inflation and deflation on the consumer level. And if that phenomena hasn't already begun, they add, it will be in full bore by the end of this decade. Interesting enough Shell also predicts that "[the] longer the delay in climate policy action, the more likely shocks become."
That emphasis is mine. Also remember that last week it emerged that, as many peak oil researchers and energy experts have long been saying, Saudi Arabia has been vastly overstating oil reserves and its ability to expand production.