If Peak Oil Is Real, This Is Why

Check out the stunning graph included in this Forbes editorial (must scroll down). It is a fine editorial but one thing it doesn't touch on that this graph helps illustrate is that Peak Oil is not inevitable. The blue bars essentially represent state-owned entities that milk their resources for lavish social spending in order to stay in power and dampen resentment over despotic rule rather than invest prudently for long term viability. The red bars represent publicly owned entities who are answerable to investors who care about protecting long term value. The blue bars don't reinvest and apply the latest technology, the red bars do. The blue bars are why the Peak Oil theory even exists. Less blue bars, more red bars, no Peak Oil.















1GOCs— A: Saudi Aramco B: NIOC (Iran) C: Qatar Petroleum D: ADNOC (UAE) E: Iraq NOC F: Gazprom (Russia) G: KPC (Kuwait) H: PDVSA (Venezuela) I: NNPC (Nigeria) J: NOC (Libya) K: Sonatrach (Algeria) L: Rosneft (Russia) M: Petronas (Malaysia) O: Lukoil (Russia) P: Pemex (Mexico) Q: Petrochina (China) T: Petrobras (Brazil) Y: ONGC (India) Z: Sinopec (China). 2IOCs— N: ExxonMobil R: BP S: Chevron U: Royal Dutch Shell V: Total W: ConocoPhillips X: ENI. Source: Credit Suisse First Boston.