Peak Oil


DEFINITION of 'Peak Oil'

A hypothetical date referring to the world's peak crude oil production, whereby following this day, production rates will begin to diminish. This concept is derived from geophysicist Marion King Hubbert's "peak theory", which proclaims that oil production follows a bell-shaped curve.


Because oil is a non-replenishing resource, there is a limit to how much the world can extract and refine. Peak oil is the day that oil production reaches a maximum and will subsequently begin to decline until full depletion is ultimately reached.

  1. Production Per Share

    A mathematical ratio used in the oil and gas industry to refer ...
  2. Probable Reserves

    After an oil exploration firm conducts a seismic survey of a ...
  3. Enhanced Oil Recovery - EOR

    Enhanced oil recovery (EOR) is the process of obtaining stranded ...
  4. Recoverable Reserves

    A term used in natural resource industries to describe the amount ...
  5. Working Interests

    Refers to a form of investment in oil and gas drilling operations ...
  6. Barrels Per Day - B/D

    A measure of oil output, represented by the number of barrels ...
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