Few of us will deny that being dependent on foreign oil supplies is undesirable. But it is not widely known that available oil supplies worldwide are dwindling, which drives the need for alternative ways of meeting our energy needs. While there is still a lot of oil in the ground, much of this is becoming harder and more costly to extract.
The term “peak oil” describes the concept that oil is a limited resource and at some point the available oil supplies will become less and less. According to some sources global oil consumption already outstrips viable new oil sources.
While we are not likely to completely run out of oil, newly discovered supplies will become less accessible and/or of lower quality, making it progressively more costly to extract. In addition, oil consumption is also on the increase as developing nations like China and India become more industrialized. Oil prices are therefore likely to keep rising.