The United States reached peak oil production in 1970, validating Hubbert’s 1956 prediction. Despite being the world’s largest producer now, the US has never recovered its capacity since that year. As the figure above indicates, nearly 90% of all the increased production in the US since 2005 has been from fracking and is the only reason total US production approaches the 1970 peak. Of the eight main fracking fields, seven will likely peak by 2025. Beyond that point, the US capacity to respond to any other interruptions of supply (geopolitics) using domestic production will become increasingly difficult. Considering normal increases in domestic, not to mention global demand, and in the absence of new supply coming online in the near term, prices for gasoline and all other petroleum products will march upwards—at least until renewables, not anytime soon, do catch up and replace oil on closer to a 1:1 basis.
Money & Grief
