Peak oil is a big topic in energy circles, which usually refers to the theory that at a point in time (usually couched as being in the not-too-distant future) the world¡¯s supply of oil, in terms of our ability to produce it, will reach its upper limit.

After that, we start running out of oil, which raises the spectre of skyrocketing prices, the strangling of transportation systems and the rapid erosion of society as we know it. At least if you are in the oil business.

However, there may be another ¡°peak¡± in oil, on the demand side, a new report reminds us. To be honest, I haven¡¯t followed this element of the energy picture before, but I am sure to pay more attention to it thanks to this story being reported by our colleagues at the Daily Telegraph on the work of a consultants group called Ricardo.

In Canada, energy economist Peter Tertzakian is the go-to expert, and earlier this year my colleague Don Cayo talked to him about how high oil prices will influence our behaviour on the demand side (i.e., make us drive less). You can see at least part of my last blog take on that here.

It sounds interesting, but is this just a provocative theory? One hopes not.

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