In Perth yesterday to launch the association's Australian chapter, ASPO president Professor Kjell Aleklett, a Swedish energy expert, said 54 of the 65 major oil-producing countries had already reached their peak production levels.

He warned that supply was likely to be unable to meet demand between 2010 and 2020.

"We think that 2010 is more likely than 2020 but when it comes to planning of energy issues, energy in the future and so on, this is a very short time and we must act now," Aleklett said.

He said four oil fields the size of the North Sea would need to be found for oil production to meet demand in 2025.

"This is just not possible," he said.

Aleklett said all countries needed to focus on alternative energy sources to reduce their dependence on oil.

The term 'peak oil' describes the turning point at which global oil production rates stop rising and start their final decline.

ASPO says Australia's oil production peaked in 2000 and it believes the global peak will occur some time between 2006 and 2015.