What is Peak Oil?  Oil reserves are finite and have been declining ever since the world's first commercial oil wells were sunk in the 1850's. By definition, reserves have always been in decline, but as demand for oil increased over the past 160 years rates of oil production have steadily increased to provide an adequate supply. Peak oil refers to the point in time where rates of oil production can no longer increase, as there is not enough economically recoverable oil left in the ground. The International Energy Agency has suggested that rates of oil production from conventional sources peaked in 2006, as shown below.

Why Bermuda should be concerned  Bermuda relies heavily upon oil for air and sea transport to and from the islands, land and sea transport around the islands and also for electricity generation. As oil becomes harder to obtain it will become much more expensive; the cost of fuels and electricity will rise, sometimes rapidly and without warning. The cost of many goods and services will also increase as transportation and operating costs go up.

The National Energy Transition - Preparing for Peak Oil The Government is already developing policies and laws to address the impending challenges with oil supplies, but full participation from residents will be necessary if Bermuda is to be adequately prepared. As an island community, we need to use much less energy and we need to harness indigenous and renewable energy resources. Please view the energy efficiency and renewable energy pages of this website for more information on how you can become part of the national energy transition.