The latest report from the Calgary (Alberta, Canada) Herald was
nothing but good news: The steadily declining production of
light oil from 2002 to late 2010 has reversed itself completely
and is now not only proving the power and principles of a free
market but “will change the way we think about oil, with many
weighty consequences…” says blogger Peter Tertzakian. The graph
he provided here shows Alberta’s production declining by about
16,000 barrels per day (B/d) every year since 2002, dropping to
just over 300,000 B/d in late 2010. Now, thanks to new capital,
new technology, and new enthusiasm, production is close to
400,000 B/d. It also “could heighten the blood pressure of a few
peak oil theorists,” said Tertzakian. He refers to the theory
first offered by M. King Hubbert in 1956 that claimed that oil
production in the United States would reach its peak between
1965 and 1970 and begin to decline thereafter. It was based upon
the assumption that the amount of oil reserves is fixed and that
it is analogous,