Peak oil refers to the point where oil production starts to drop. Peak oil occurs for all oil wells, which produce increasing amounts of oil in a bell-shaped curve. The amount rises gradually to a peak and then declines from that point in a gradual curve.
When all the world’s oil wells are added up, the overall production follows a similar trajectory. Although there is much debate about when or even if world oil will peak, it doesn’t hurt to learn about it…just in case.