[smiley]

$this->bbcode_second_pass_quote('', 'S')oaring commodity and raw material prices are increasing the cost of oil and gas projects by up to three times, Organization of Petroleum Exporting Countries ministers said Friday.

Although current high oil prices may be helping to drive much-needed crude investment, the rising cost of construction projects could curtail new energy production development, they warn

[ohanian]

Positive Feedback

High oil prices ----> High commodity prices, High raw material prices

High commodity prices ----> High oil and gas project costs
High raw material prices ----> High oil and gas project costs

High oil and gas project costs -----> High oil prices


nothing really matters
nothing matters at all
and the needle returns to the start of the song
and we'll sing along like before
and peakoil begins tomorrow

[AirlinePilot]

This is right in line with the "Net Oil" concept thread started by Novus. Potentially much bigger prblems much sooner due to it.

[Kingcoal]

This is peak oil as described by Simmons. It's here now.

[mekrob]

Hahahahaha. I wanna hear the economists squirm their way outta this little bugger.

But to analyze what OPEC said let's look back at it:
$this->bbcode_second_pass_quote('', 'S')oaring commodity and raw material prices are increasing the cost of oil and gas projects by up to three times, Organization of Petroleum Exporting Countries ministers said Friday.

Although current high oil prices may be helping to drive much-needed crude investment, the rising cost of construction projects could curtail new energy production development, they warn

[grillzilla]

Option 3) they want the consuming countries to come up with a few billion dollars to help pay for the developments. "Or Else" is the unspoken message.

They have already floated the notion of a "guaranteed" market, but it didn't get any love.

[Novus]

I could not have had better timing with my Net Oil concept. Before, articles like this just didn't make much sence or were just seen as simple problems associated with declining production. Now everywhere I look I see the Net Oil reality of decling EROEI. Unconventional demand is eating up ever larger portions of worlds oil suppy. I was blind but now I can see, yet I do not like the sight I now behold. The world is facing cliff in the near future. I think the world will be a very desparate place by as soon as 2010.

I curently reading Joseph Tainter's Collapse of Complex Societies. He basically says every complex society that ever collapsed was destroyed by declining EROEI. Very scarey stuff. Acording to Tainter an EROEI induced collapse happens extreamly quickly...A decade or two at most. I think the oil age about to come to an abrupt end.

[emailking]

Is that book just an analysis of how socities have collapsed over time or is he trying to demonstrate how ours will collapse?

BTW: I've convinced my brother about peak oil and the like in the last few months (but he says alternatives will come in as needed via the market). I sent him your post and he called it nonsense. I tried to explain it an he laughed, made fun of the terminology, etc.

We've got a long way to go.

[MonteQuest]

$this->bbcode_second_pass_quote('Novus', 'U')nconventional demand is eating up ever larger portions of worlds oil suppy. I was blind but now I can see, yet I do not like the sight I now behold. The world is facing cliff in the near future. I think the world will be a very desparate place by as soon as 2010.

[Raxozanne]

$this->bbcode_second_pass_quote('Novus', '
')I curently reading Joseph Tainter's Collapse of Complex Societies. He basically says every complex society that ever collapsed was destroyed by declining EROEI. Very scarey stuff. Acording to Tainter an EROEI induced collapse happens extreamly quickly...A decade or two at most. I think the oil age about to come to an abrupt end.

[miraculix]

@emailking

Tainter makes some extrapolation as far as our own society is concerned, the main thrust is the study of ancient societies of varying degrees of compelxity

His postulate is, that as return on investement in COMPLEXITY deminishes, society will degrade its level of complexity as a response

Energy can be a factor for exarcabation

makes good reading!

[abelardlindsay]

$this->bbcode_second_pass_quote('miraculix', '@')emailking

Tainter makes some extrapolation as far as our own society is concerned, the main thrust is the study of ancient societies of varying degrees of compelxity

His postulate is, that as return on investement in COMPLEXITY deminishes, society will degrade its level of complexity as a response

Energy can be a factor for exarcabation

makes good reading!