Professor Kenneth S. Deffeyes, Professor Emeritus of Princeton University, predicted that world oil production peaked in December 2005. I checked out a spreadsheet on 'World Oil Supply' at the U.S. Energy Information Administration [EIA] website. Daily world oil production in December 2005 was 84.7 million barrels. The December daily average was the peak daily average of all the months since then:
January 2006: 84.4.
February 2006: 84.4.
March 2006: 84.1.
Based on just the figures above, it is too early to conclude that we have passed the peak of world oil production. There may be a glut of crude oil on the market. Demand may be softening. The global economy may even be contracting, although I doubt that.
Indisputable, however, is the fact that crude oil production from many nations has been falling. You can determine this yourself from the EIA website:
United Kingdom: falling since 1999.
Norway: since 2004.
United States: since 1970.
The EIA website also shows that crude oil production from the North Sea has been in decline since 1999.
Governments have admitted (and statistics are proving) that production has been declining from several large fields:
North Slope, Alaska: for several years at least
Burgan, Kuwait: since 2005
Cantarell, Mexico: since 2005
The oil that has been easiest to recover has been from the largest fields. When a few more of them reach peak production, it will be obvious that world oil production has peaked and that the era of cheap oil is over.
The end of cheap oil is the reason I am holding XSNX for a few years. I purchased the shares cheaply, and believe world oil production will peak in the next few years (if it has not already). We will then be in an era of increased demand for electricity generation and storage because of the need to power our vehicles with something other than gasoline.