Dagens Industri reports that Matthew R. Simmons has said that world oil production peaked back in 2005. Simmons has been an energy advisor to George W. Bush and frequently appears on Bloomberg and other international economic tv news.

We're currently using over 80 million barrels of oil every day, but Simmons predicts that we will not be able to produce more than 60 million barrels of oil per day in the year 2015.

Simmons reminds us that $140 per barrel is still relatively cheap and as the price continues to surge we will see increased profitability in locally produced goods. The end of cheap transportation will change the world.

We think Simmons is a brave man, he has been talking about peak oil for years now and has been ridiculed a long time. Finally media is starting to get their facts straight. We're running out of cheap easily accessible oil.

During most interviews Matt goes very sad and pessimistic about our future. There are several obvious risks involved with the end of cheap oil. One is that it is likely we will start using coal to liquid fuels processing. Using petrol produced in this manner releases a huge amount of carbon dioxide compared to conventional petrol, and as such is likely very bad for global climate change.

But not everyone sees such a gloomy future as Matt Simmons, many think we will really see the green revolution catch on. Less energy wasted through the use of Electric Vehicles, recycling of goods and even creation of biofuels from food waste.  There are huge money to be made going green today, and as the price of oil goes up, so will the profits of being nice to the climate.

Source: di.se