[SoothSayer]

The Decline of Oil
May 08, 2006 — By Earth Policy Institute

Their article here says:

The influence on oil production in the coming years that is most difficult to measure is the emergence of what I call a "depletion psychology." Once oil companies or oil-exporting countries realize output is about to peak, they will begin to think seriously about how to stretch out their remaining reserves. As it becomes clear that even a moderate cut in production may double world oil prices, the long-term value of their oil will become much clearer.

In other words, it may be financially beneficial to NOT ship oil too quickly as the price rises ... to stretch out your long term income whilst maintaining your current income level.

(This will also have the effect of increasing oil prices and accelerating Peak or Plateau Oil)

I wonder if Saudi and OPEC are playing a bit of this game?

[MacG]

It has been touched. Savinar or Hansson (or both) have been onto the subject.

"Why should I pump this oil today when I will get much more money for it in a year?"

Just try to avoid disruptions in the economies though - a fat depression could send oil prices down to $5/bl.

[lutherquick]

And that is why you need more democracy all over the world...
To exploit those resources in an uncontrolled manner...

Holding back, or controlling is not a good thing, well, for the demand side... it's great for the supply side...

Rep Bartlett basicly said it all, he said, markets work if there are unlimited resources...

I would add that markets and democracy are being thrown around by the US when in fact, none of it is relavant to global stability...

"Depletion psychology" might in fact be what was in Bush's mind for invading Iraq, and 9/11 was just a good agenda that the media would buy...

Maybe we are in Iraq for what Saddam might be thinking about, for what was in Saddam's future psychology, but in Bush's fear...

[Zardoz]

The only reason OPEC nations have historically shipped enough to meet demand is that TPTB in those nations were only thinking of their own personal short-term gains. They have a super-extravagant lifestyle to maintain, and it requires a large flow of incoming cash to keep it up.

If they were thinking of the future, and cared at all about their children and grandchildren, they would have reduced production long ago, and stretched out the life of their fields.

Instead, they've only been concerned about being able to afford all the $10,000-a-night northern European hookers they wanted, so they kept the production up and the cash coming in.

[something_awfull]

"Depletion psychology" hehe, i thought it was some sort of new niche market for health professionals.

[Cobra_Strike]

$this->bbcode_second_pass_quote('something_awfull', '"')Depletion psychology" hehe, i thought it was some sort of new niche market for health professionals.