Peak Oil

Peak oil refers to a period in time when our oil supply starts to diminish due to declining availability of easily mined oil. Many experts suggest that we are experiencing peak oil right now, and that we are about to enter an era where the demand for oil far outweighs the supply forcing prices high. Since we are so heavily dependent on oil for transport, energy and even clean water to an extent (through desalination units), it is hard to move quickly to alternatives and hence the price of oil skyrockets. You will notice on the Wikipedia peak oil page that there was a spike previously around 1980 when the price of oil jumped considerably. While the global financial crisis (GFC) has somewhat dampened demand, it is still likely to become an important future issue, and our ability to move quickly from oil dependency is key to national security and national economic stability.

So what does this have to do with vehicle to grid? Vehicle to grid systems reduce the amount of oil based electricity generation through better penetration of sustainable and renewable energy sources as well as allowing the electrification of transportation, again reducing oil, diesel and petrol demand.

This peak oil video shows a great animation of the peak oil problem illustrating how our runaway addiction to oil could lead to a large economic meltdown or crash when that oil is no longer available at the rate we currently use it.