by Peleg » Sat 24 May 2008, 17:25:28
$this->bbcode_second_pass_quote('FreddyH', '')$this->bbcode_second_pass_quote('catbox', 'I') have never read that initial post you made to start the thread....glad I had a chance to read it this evening. Needless to say, you nail it and also make it clear enough for the average person to get.
While it makes great fodder for the McDoomers, MQ's 2004 analysis was far more dire than we know now about the eventual unfolding.
Demand destruction has been occurring since the crude price began its secular uptrend in early 1999. Because of affluence and currency debasement, Americans are relatively new to this party. Welcome!
As long time consumers have been falling off the wagon, new buyers from Korea, Mexico and recently Chindia etc have been taking their place.
This is merely supply and demand of a commodity running its normal course. Far be it that crude represents an anomaly from all other commidities presently enjoying the 2007/2008 spike.
EIA has announced two production records in the last seven months. This is not Peak Oil.
WRT to MQ's musings on terminal decline of 5% per year, it was a ridiculous statement in 2004; as evidenced by the geologist based forecasts of the time (eg ASPO 1.5%). And even moreso today. The prevalence of recent bottom up studies has reduced the consensus of post peak decline projection to 1.2% ... an event that is unlikely until 2019.
MQ's 5% decline rate implied an All Liquids URR of 1804-Gb. ASPO's estimate was 2500-Gb in 2004 and the present consensus is 4001-Gb.
Not to be confused with those 24-model results, my own review of MegaProjects suggests a Peak in 2011 followed by a mere 0.3%/yr to 2025.
Recent studies illustrate that the conventional crude decline rate increases gradually after Peak to an eventual 8% factor at maturity. It is a very long process.
As MQ stated, the consequences of higher crude prices will be felt by the lower class of society first. Their lack of wealth & income makes them vulnerable to food/energy inflation. At no point in the future will the middle class (wealthiest 10%) and upper class (top 1%) significantly notice Peak Oil.
You people deserve what's coming.