Peak oil supply will be hit in 2009 as the economic crisis and low prices cut into much needed E&P investment, says an official at Australian investment bank Macquarie.
“This is our view – capacity has pretty much peaked in the sense that declines equal new resources,” Iain Reid, head of European oil and gas research at Macquarie, told Reuters:
“The peak oil theory that oil supply is at or near its peak was long considered marginal.
It gained currency when prices (CL-FT70.63-0.30-0.42%) zoomed towards their record of nearly $150 (U.S.) hit in July last year, with leading exponents suggesting various dates for the supply peak to be reached.
Some oil majors have acknowledged the prospect of dwindling production, but others have argued better extraction techniques and other technological advances will offset any decline.
Macquaries recent report, “The Big Oil Picture: We’re not running out, but that doesn’t mean we’ll have enough” predicts global oil production capacity topping out at 89.6 million barrels per day this year. This puts them in a much more pessimistic camp than much of the energy investment world, however.