Research Slams Peak Oil Theory

Output from the world's oil fields is declining at 4.5 percent a year, slower than previously believed, according to a new study.

The study, conducted by the global research institute Cambridge Energy Research Associates, has found the rate of decline in oil fields significantly slower than the eight percent rate predicted by leading analysts.

The study of 811 oil fields accounted for two-thirds of current global oil production and half the proved and probable conventional oil reserves.

The findings go against Peak Oil theory, which argues a peak in world oil production is fast approaching or has already reached its maximum.

The theory was rejected again today by a BP economist, who claims the world is not facing an impending oil shortage.

Speaking at a meeting held by the UK's All Party Parliamentary Group on Peak Oil and Gas, Peter Davies says an imminent peak in production has been repeatedly and wrongly predicted.

Davies claims climate change policies encourage a shift away from oil consumption and could lead to a peak rather than a shortage of oil.

Davies says the world still has 14 trillion barrels of conventional and unconventional oil "in place", with conventional oil accounting for half the total.

Last year, the Association for the Study of Peak Oil and Gas (ASPO) forecast the availability of 250 billion barrels of yet-to-find global conventional oil reserves.

Working with UK-based organisation The Oil Depletion Analysis Centre, ASPO says oil production would plateau at less than 100 million barrels per day before 2020.

By Ozge Ibrahim