World oil production peaked in 2006 and is likely to reduce to half of current production in 2030. Peak Oil represents the situation when amount of oil that can be extracted in a year begins to decline , because geological limitations are reached. Digging up of oil becomes more and more difficult ,so the costs increase and oil production decreases. More This decline in production is due to reduction of pressure in the oil fields. This reduction in pressure takes place as we drill oil. It becomes necessary to inject gases in the oil wells to increase pressure. Finally, even when this ceases to keep up the production oil is pumped up at a slow rate. Germany based Energy Watch Group , an association of scientists and parliamentarians released a report titled Crude Oil: The Supply Outlook, in which it is concluded that oil production peaked at 81 million barrels a day r Mb/d in 2006 , much earlier than most experts had forecast. The report which comes only a few days after global oil production hit a record high , has also predicted that global oil production will fall several per cent each year and by mid 2030 it will be 39 Mb/d. Hans-Josef,the group’s founder and German Mp,told The world soon will not be able to produce all the oil it needs as demand is rising while supply is falling. This is a huge problem for the world economy. This report is in sharp contrast to International Energy Agency’s remarks which denies that such essential changes are going to happen in the near mid-term future. The report said that IEA’s message that business as usual will be possible in near future is not reflecting the true state of affairs . Image Via:CbC