Higher Oil Prices Blamed on Peaking Production

As oil prices reach record levels, industry observers ponder a future of increased demand and a possible peak in production. A European group announced last week that world production peaked last year and will decrease steadily in the years ahead, even as demand continues to grow. VOA’s Greg Flakus went to a peak oil conference in Houston recently and filed this report.

On hand for the Association of Peak Oil Studies conference were industry representatives, engineers, analysts and investors all expressing concern about what the world will do when production reaches its peak.


Among the better known speakers was legendary oil developer and billionaire T. Boone Pickens, who expressed his belief that world oil production is unlikely to keep up with rising demand, meaning much higher prices could be ahead.

“The $90 a barrel does not surprise me. It would not surprise me if it went to $100 a barrel. I am not predicting that, but I do think it will go to 100 before it goes back down to 80,” he said.

Voice of America (with video)