UAE. Matthew Simmons, a prominent expert on the issue of peak oil and the author of the controversial book 'Twilight in the Desert: the Coming Saudi Oil Shock and the World Economy', is in Dubai this week to host a luncheon with the UAE’s business leaders from the oil and gas, banking and investment industries. 

Simmons is the Chairman and founder of Simmons & Company International (SCI), one of the largest investment banking practices serving the energy industry. He is a strong proponent of the dangers of peak oil and believes the peak oil issue is poorly understood and the world’s data on production, demand and inventories is alarmingly inaccurate.

“Peak oil is probably now past tense and the world is desperately in need of a sustainable series of new energy sources and urgent adoption of conservation measures to wean 'us' all from a chronic addiction not just to oil, but all three forms of fossil fuels,” said Matthew Simmons.

According to Simmons one of the most critical questions facing the global energy market is whether key oil producing nations can increase oil production to meet the current and future growth in world demand.  He warns that with the rapid population growth, improved economies and subsequent increase in vehicles the world’s demand for oil can only continue to multiply.

Simmons also cites another major risk is the ‘ageing’ of the oil and gas industry. These ‘above ground risks’ include old oil and drilling rigs, tank farms and pipelines, as well as a ‘greying’ global workforce. The industry faces a recruitment challenge, as the average age of workers is 56, yet there is limited supply of young, skilled workers.

Considered a ‘post-oil energy crusader’ by some industry insiders, Simmons advocates that countries identify sources for energy alternatives and adopt new energy policies. 

“To avoid economic meltdown we should be drilling in the Arctic National Wildlife Refuge. At the same time governments should modify energy policies in order to adopt practices that would radically improve efficiency,” said Simmons.

Simmons sees the Middle East Region as pivotal to the future security of world energy supplies. “The Middle East energy sector, once able to grow with little capital expenditures, has now undergone a sea-change as the super giant oil fields aged and the cost to add new productive capacity soared."

During his visit to Dubai Simmons is also a featured speaker at the second annual National Oil Companies (NOC) Conference being hosted by Marsh, the UK’s leading insurance broker and advisor.

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