Peak oil is not a new term in this burning 21st century. It is a much hyped word like global warming and if rumors are believed to be right, we are going to face an oil crisis in the coming years. It was first coined by Hubert in the early 1970s, where he declared that there would a decline in oil production in the coming years. This decline follows after a quick hike in oil production and is known to be the peak period. The sudden slide from high to low in oil production is charted out in a graph and is commonly known as the Hubert s peak.

This sudden increase and decrease of oil is due to many factors. Hubert explains that this phenomenon takes places due to the sudden depletion of the oil reserves, cost inflation and huge demand of oil across the entire continent. Oil production has been huge in the recent years owing to the sudden demand of oil for various needs. It has also caused external damage to environment as well. Financial stagnation has also widely affected the depletion of oil reserves. Government has a huge stake in keeping up with the changing times. They have shown lesser priorities towards conserving oil reserves thus leading to the mining of oil from the ground.

In the year 1971, Hubert's predictions came true thus marking the emergence of peak oil production and its decline. Later an organizational committee known as the OPEC was formed to streamline the process from the oil reserves of various countries. They had their arguments about peak oil, but have changed their perceptions in the recent years. A pact was formed by the committee in 2006 stating that the peak oil phenomenon on reoccurrence would have to stand by certain measures to counteract the sudden crisis.

Some of the notable facts that have given way to this factor are the global consumption of oil in every sector and it is likely to continue for a decade or so. We also have to understand that oil depletion is taking place at a gradual pace and is not good in the long run with regard to our consumptions. Moreover, a lot of countries are now fighting to take over the oil reserves and this has caused loss to mankind and rise in weapons. Financial inflation is on the rise due to the scarcity of oil.

The latest technology has been adapted to pump out oil from the ground. Millions of money has been spent on researching various oil fields. It has caused a lot of damage to the environment and is still creating havoc in the minds of many people. The debate is on for the supply and demand of oil and therefore constructive measures have to be taken to save oil. Steps towards reducing oil consumption will drastically change the financial outlook of a country. Oil is not a renewable source is a precious commodity in our times. Taking the necessary action to prevent such a disaster would be the first and foremost steps to realize the importance of oil and its impact on other services as well.