We may have to worry about peak oil demand soon

By Mudashir Tunde

A peak oil demand might continue to result in its rise in value for the next ten years if the world leaders implement low-carbon policies more strictly according to the Head of the Oil Industry & Markets Division at the International Energy Agency (IEA), Neil Atkinson.

Speaking to  CNBC today, Neil said, “If the world does implement policies more rigorously, peak oil demand could come at some point in the late 2020s or in the 2030s.”

The IEA is not giving the specific date or time-frame for the expected peak oil demand due. This is because although the continued increase in oil demand is without a doubt going to cause price inflation, the exact time this will occur cannot be specifically predicted.

Atkinson continues, “What we do know is even when oil demand does peak at some point in the future, it isn’t going to drop off a cliff because sustainability for oil in so many sectors is still elusive. True, there are signs that oil demand growth is moderating, but “we must stress that it is still growth.

Atkinson would not be the only expert to predict a peak oil demand in the next decade. Many leading figures in the oil sector see the potentials of this highly-lucrative venture. However, there are many drawbacks that must be corrected if we are to experience such a high growth in the near future.