Peak oil in the context of "Transition Towns"

An energy crisis or energy shortage is any significant bottleneck in the supply of energy resources to an economy. In literature, it often refers to one of the energy sources used at a certain time and place, in particular, those that supply national electricity grids or those used as fuel in industrial development. Population growth has led to a surge in the global demand for energy in recent years. In the 2000s, this new demand – together with Middle East tension, the falling value of the US dollar, dwindling oil reserves, concerns over peak oil, and oil price speculation – triggered the 2000s energy crisis, which saw the price of oil reach an all-time high of $147.30 per barrel ($926/m) in 2008.

Most energy crises have been caused by localized shortages, wars and market manipulation. However, the recent historical energy crises listed below were not caused by such factors.

Oil depletion is the decline in oil production of a well, oil field, or geographic area. The Hubbert peak theory makes predictions of production rates based on prior discovery rates and anticipated production rates. Hubbert curves predict that the production curves of non-renewing resources approximate a bell curve. Thus, according to this theory, when the peak of production is passed, production rates enter an irreversible decline.

An oil well is a drillhole boring in Earth that is designed to bring petroleum oil hydrocarbons to the surface. Usually some natural gas is released as associated petroleum gas along with the oil. A well that is designed to produce only gas may be termed a gas well. Wells are created by drilling down into an oil or gas reserve and if necessary equipped with extraction devices such as pumpjacks. Creating the wells can be an expensive process, costing at least hundreds of thousands of dollars, and costing much more when in difficult-to-access locations, e.g., offshore. The process of modern drilling for wells first started in the 19th century but was made more efficient with advances to oil drilling rigs and technology during the 20th century.

Wells are frequently sold or exchanged between different oil and gas companies as an asset – in large part because during a drop in the price of oil and gas, a well may be unproductive, but if prices rise, even low-production wells may be economically valuable. Moreover, new methods, such as hydraulic fracturing (a process of injecting gas or liquid to force more oil or natural gas production) have made some wells viable. However, peak oil and climate policy surrounding fossil fuels have made fewer of these wells and costly techniques viable.

From the mid-1980s to September 2003, the inflation-adjusted price of a barrel of crude oil on NYMEX was generally under US$25/barrel in 2008 dollars. During 2003, the price rose above $30, reached $60 by 11 August 2005, and peaked at $147.30 in July 2008. Commentators attributed these price increases to multiple factors, including Middle East tension, soaring demand from China, the falling value of the U.S. dollar, reports showing a decline in petroleum reserves, worries over peak oil, and financial speculation.

For a time, geopolitical events and natural disasters had strong short-term effects on oil prices, such as North Korean missile tests, the 2006 conflict between Israel and Lebanon, worries over Iranian nuclear plans in 2006, Hurricane Katrina, and various other factors. By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession. The recession caused demand for energy to shrink in late 2008, with oil prices collapsing from the July 2008 high of $147 to a December 2008 low of $32. However, it has been disputed that the laws of supply and demand of oil could have been responsible for an almost 80% drop in the oil price within a six-month period. Oil prices stabilized by August 2009 and generally remained in a broad trading range between $70 and $120 through November 2014, before returning to 2003 pre-crisis levels by early 2016, as US production increased dramatically. The United States went on to become the largest oil producer by 2018.

The Lewes pound was a local currency in use in the town of Lewes, East Sussex. Inspired by the Totnes pound and BerkShare, the currency was introduced with the blessing of the town council in September 2008 by Transition Town Lewes as a community response to the challenges of climate change and peak oil. The Lewes pound is discontinued and is no longer valid since 31 August, 2025.

A community project is a term applied to any community-based project. This covers a wide variety of different areas within a community or a group of networking entities. Projects can cover almost anything, including the most obvious section of concern to any community, the welfare element. Welfare community projects would for example be, a locally run and locally funded orphanage; a Christmas dinner kitchen for the homeless. Another important sector of importance to the community would be charity. Charitable projects in the community can include, but are not limited to, ecological charities concerned with either the maintenance of green spaces, or in some cases, the prevention of the reduction/removal of green spaces. An old clothes collection service would also be a community-based charity project. One important subdivision of community projects, and at times overlooked, is those of an economic nature such as LETS. The highlight of economic community projects is what is known as Transition Towns. Most economic community projects are designed at creating some sort of economic autonomy.

It begins when a small collection of motivated individuals within a community come together with a shared concern: how can our community respond to the challenges, and opportunities, of peak oil and climate change?

Marion King Hubbert (October 5, 1903 – October 11, 1989) was an American geologist and geophysicist. He worked at the Shell research lab in Houston, Texas. He made several important contributions to geology, geophysics, and petroleum geology, most notably the Hubbert curve and Hubbert peak theory (a basic component of peak oil), with important political ramifications. He was often referred to as "M. King Hubbert" or "King Hubbert".