The Shift from Peak Oil Supply to Peak Oil Demand

Historically, concerns surrounding oil production centered on the theory of peak oil supply, as highlighted by M. King Hubbert's prediction that U.S. oil production would peak in the 1970s. However, the reality diverged as high prices during supply shocks led to alternative energy sources and increased efficiency among consumers. The current discourse has shifted from potential supply shortages to questioning when global oil demand will peak, influenced by factors such as electric vehicle adoption and energy transition policies. This change in focus holds significant implications for investment strategies and global oil dynamics, as understanding demand trajectories is essential for long-term planning in the industry.