by Pops » Mon 20 Apr 2015, 10:38:59
$this->bbcode_second_pass_quote('dolanbaker', 'T')here is (& will be) huge amounts of production that would be extracted on the final 30% of the curve that is being extracted earlier, so the shark fin is more likely than ever before.
Along with the possibility of
"systemic tipping points" the shark-fin is the biggest threat of peak oil, IMO. It changes the meaning of peak oil from simply
the high point to; The Seneca Point, The Willie E. Overlook.
I feel a little like that is where we are now.
PO itself has always been about rate. On the left side of the curve, the up side, rate is constrained by demand; the rate of extraction is in practice limited only by the amount of demand. A Hubbert curve where "all other things are equal" would be nice and smooth on the left side; more and more demand creates more and more wells would make more and more oil. That same Hubbert peak (isolated from "other things") would show a nice smooth, gradually accelerating decline to a long smooth tail as fewer and fewer new wells extracted less and less oil.
But of course all things are not equal.
My knee-jerk is that "bankers' will take every advantage including simply making things up in order to make a buck – and so will the average Joe. Read some of Michael Lewis's books,
The Big Short, Flash Boys or Liars Poker or
Quants by Scott Patterson to get an idea of what "finance" has become. The biggest rip off in history took place in the oughties and no one went to to jail — because everyone was complicit. I don't pretend to know what goes on in financial markets but there is no doubt in my mind that the extra trillion or two in oil price paid over the last few years didn't go toward diesel to run frack pumps.
The negative effects of >$80 oil are obvious. Governments around the world are borrowing from investors to make money "easier" — you know; like it was in '05. But by keeping interest low, they are effectively taking money from every other savings account and asset class and transferring it to consumption—burning the furniture.
Even so they can't offset the higher cost of oil to the economy. And now, drillers of the only
new oil available are forced to pack it in at <$80.
DaDum DaaDumm DA DUM!
When people have said PO is
only about transportation I always shake my head.
Transportation defines our economy. It defines the modern world.
.
Spending past income is the hallmark of the oil age it occurs to me
.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)