Has Global Oil Production Reached Maximum Capacity: A Debate on Peak Oil

As the price of oil soars to record highs and oil companies report record profits, today we look at some reasons why this may be occurring. Last Friday, oil prices rose to over $75 a barrel with consumers paying an average of $2.91 a gallon - 68 cents higher than a year ago.

Yesterday, Exxon Mobil, the world's largest oil company, reported the fifth highest quarterly profit for any public company in history. In January, Exxon posted profits of almost $11 billon, which was the highest quarterly profits of any company ever. Exxon now holds the first, second, fourth and fifth spots of highest quarterly earnings of any company. And Dutch Shell, another oil company, holds the third spot.

With the mid-elections looming in November, Congress and President Bush are scrambling over what to do about the public's increasing concern over the rising oil prices and corporate profits.

Yesterday, the President and some Republicans called for eliminating the $2 billion dollars in tax breaks that Congress passed as part of the energy bill last August. Some Democrats have called for a repeal of oil and gas tax breaks worth more than $10 billion dollars over the next five years. Earlier this week, Bush stated some of his ideas to address the problem.

* President Bush, speaking to the Trade Group for Ethanol producers in Washington D.C. on April 25th, 2006.

A conference is being held in New York City this week examining an issue that is getting increasing attention. The Peak Oil Conference, sponsored by Local Energy Solutions and the Five Borough Institute is bringing together experts in energy, agriculture, economics and geology to address what they say is partly the cause of high oil prices. Peak oil occurs when half of all existing oil has been pulled from the ground. Therefore oil becomes more expensive and the economy goes into recession. Some experts believe we are at peak now while others disagree.

Today, we host a debate on the issue of peak oil:

* Julian Darley, founder and director of the Post Carbon Institute and Global Public Media. He is also author of "High Noon for Natural Gas: the New Energy Crisis" and co-author of the forthcoming book "Relocalize Now! Getting Ready for Climate Change and the End of Cheap Oil."
* Michael Lynch, President of Strategic Energy & Economic Research. Previously, Michael was Director of Asian Energy and Security, at the Center for International Studies, M.I.T., as well as a Lecturer in the Diplomatic Training Program at the Fletcher School of Law and Diplomacy at Tufts University.

LISTEN ONLINE:
http://www.democracynow.org/article.pl?sid=06/04/28/1439240