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Peak Oil: Energy prices dominate G8 agenda

There is an organisation called the Association for the Study of Peak Oil. They produce a monthly newsletter.

This month's newsletter looks at oil production from Saudi Arabia - which is the largest producer in the world. The real evidence is that Saudi Arabia may now have passed the year of peak production. ASPO's base case prediction for the peak of production of regular oil is 2005.

Venezuela has bought 100,000 barrells of oil a day from Russia because it (notwithstanding the fact that it is the 5th largest producer) cannot produce the oil it has promised to produce.

Venezuela has a lot of Heavy Oil, but this contract shows that Heavy Oil is not a good solution to a shortage of regular oil. Oil from gas and deepwater oil will give the chance of increased production to 2010, but regular oil appears by a number of sources of evidence to have now peaked.

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