Peak Oil: the next big thing (Part Three)

Oil is getting scarce. The alternatives are unattractive. What does that mean in economic terms? The availability of oil and its price are linked by the laws of supply and demand. These laws are often cited as a deus ex machina that will save us from energy privation and avert a crisis. Those who think this way show they lack an understanding of how supply and demand work, and most often show it in how they speak of the issue. So now, let’s look at the microeconomics of oil: the supply, the demand, the cost, the price, and the value of petroleum. Here I make the corrections I would have been making had I not made it a bigger priority to hit on girls on the 4th.