by Zentric » Wed 29 Jun 2005, 16:59:28
$this->bbcode_second_pass_quote('Battle_Scarred_Galactico', 'I') think you're giving some people way too much credit, no one's going to be profiting from peak oil.
Say what? Don't you recall the "dress rehearsal" California Energy Crisis of 2001? It doesn't matter whether a commodity is geologically-constrained or not for a collusion of commodity providers to manipulate the market for it.
Say, for example, the market has demand for a 100 units, but your cartel has only 90 units available. And, therefore, with supplies so scarce, you can charge $5.00 per unit. Wow!
Another scenario. The market still has demand for 100 units, and you still have 90 units available at the moment. But you are not quite satisfied in getting
only $5.00 per unit - you want $10.00.
So you call "Bob", at the commodity-refining plant, and say, "Bob, I think your refinery needs to go down for repairs for the next couple weeks." And Bob says, "Huh, we just did all the repairs last month." And you say, "Bob, you didn't understand what I just said. Repairs. Now!!" And, Bob, who likes the idea of being employed says, "Yes, of course, boss!"
So, therefore, the demand remains at 100 units, your cartel provides only 80 units (but at $10/each!) and you laugh all the way to the bank, except for when passing the graveyard, when you whistle show tunes.
This happened in California, with respect to power generation, a few years ago and it seems virtually certain to happen again. Check out this "Exponential Enrons Ahead" article, which I found linked from the lifeaftertheoilcrash.net site:
http://www.truthout.org/docs_2005/062305A.shtml
However, Domus' reptile theory does appear equally credible.
