Investor Pickens says peak at hand

Tuesday, March 06, 2007

From The Energy Bulletin:

Texas oilman Pickens says global oil production at its peak
Jim Krane, Associated Press

Legendary Texas oilman T. Boone Pickens sees today's stubbornly high oil price as evidence that daily global production capacity is at - or very near - its peak.

If demand for crude oil rises beyond the current global output of roughly 85 million barrels per day, Pickens told The Associated Press, prices will rise to compensate and alternative sources of energy will begin to replace petroleum.

...Forbes publisher Steve Forbes challenged Pickens' assumptions during an exchange in the conference, saying political - not technological, or geological - roadblocks stood in the way of increasing the world's oil output. With the right incentives in places such as Mexico more oil could be brought to market and prices could drop, Forbes said.

Pickens responded by saying that Mexico is a declining producer of oil, as are most other countries, naming the United States, Norway, Britain, Canada and soon, Russia.