Hi Jerseyspud
Quote -"Sorry to sound a bit stupid but what is peak oil and the implications on society?"
You've seen on films on tv where a company (like say Shell) "strike oil" and it gushes out of the ground like a fountain, then they put a plug on the top of the pipe to stop it. While the oil gushes out under it's own pressure, they don't have to spend any 'extra' money- its pumping itself out, straight into their barrels or pipelines. Once the pressure drops to a certain level, the oil will only dribble out and then it starts to cost money to pump the oil out. That's roughly when the well is past its peak.
So as an example, say Shell spent £100 drilling the well and then they get a 10,000 barrels of oil a day selling it at £60 a barrel, then they're making loads of money. But if they only get 1 barrel a day cos the oil's just dribbling out, then it's not worth them keeping a bloke on site to switch the tap off. Peak has been reached.
However, if the price of oil went up to £600 a barrel, then it would be worth the extra money to get a pump put in the well and get as much oil as possible out of it while the price was high. Hope that explains it a bit?! Took me a while before I understood all the consequences!
