Saudi Arabia is one of the largest oil producing nations in the world, outshining Russia. However, at present the Saudis are experiencing immense economic and demographic problems which involve Peak Oil Crises. Based on his analysis, famous American geologist M. King Hubbert has put forth that there will be sudden increase in oil production in the oil producing spots and thereafter, a sharp decline will follow. This is referred to as
peak oil theory. This theory is founded on the observed production rates of individual oil wells, and the combined production rate of a field of related oil wells. The aggregate production rate from an oil field over time appears to grow exponentially until the rate peaks and then declines, sometimes rapidly, until the field is exhausted.
A report developed by U.K.’s Chatham House shows that t Saudi Arabia’s oil distribution will peak around 2020 and, decline to zero by 2038. This decline will mainly come about due to the growth in consumption by Saudi Arabia’s rapidly growing population and increases in per capita energy consumption.
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