Peak Oil is You
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Page added on August 23, 2012
From Peak to Plateau?
Just five years ago experts were talking about peak oil production and looming scarcity. Today, the trend has reversed as North American oil output surges and the geopolitics of energy are changing. Some experts say the outlook for oil prices is bearish. Others say fundamentals support $105 a barrel. Shale oil will not collapse the price, say others.
But, will we see a dislocation in oil prices if Chinese demand swoons?
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5 Comments on "From Peak to Plateau?"
BillT on Thu, 23rd Aug 2012 11:54 am
We are bouncing along a precarious plateau, balanced on the edge between total collapse of the financial system and hitting the wall of peak production.
If oil prices drop, wells will be shut down bringing prices back up. If the world demands more oil, prices will also rise. Either way, oil is going to get more and more expensive or more and more oil companies will fail.
Kenz300 on Thu, 23rd Aug 2012 2:30 pm
China and India are still growing between 6 and 8% a year using more and more oil every day. This increasing demand will more than offset any decline by Europe and the US due to slow growth or a recession.
China realizes that oil resources are finite and are looking to lock in supplies around the world while pushing electric vehicle development and subsidies at home.
anselm on Thu, 23rd Aug 2012 6:14 pm
Let’s grab the pom-poms and cheer!!!
Merovingian on Fri, 24th Aug 2012 2:41 pm
Is that SOS’s mom?
MarkR on Fri, 24th Aug 2012 5:09 pm
This is a repeat of the 1970’s. I remember in school seeing films about how oil would run out by the 1990’s. Jimmy Carter was telling people to turn down their thermostat, etc.
Then they made a whole bunch of new discoveries and pushed to expected date of peak oil back decades. However, I think this time there is a good possibility that in a few decades when these new resources peak, it will be peak oil for real. Or perhaps not, who knows.
Fortunately in a few decades, with the accelerating rate of technological advancement electric cars will be as good as ICE cars. Biofuels will be cheap enough for airline travel or maglev vacum tunnel trains will replace most air travel.