onlooker wrote:So monitoring the forums I have not seen a Post where people are giving their estimate of when the big problems related to peak oil will materialize.
Pops wrote:-snip-
All that is pretty well indistinguishable from the predicted effects of PO in my book. I wondered in '04 in my first post here how long would it be before the price of oil was so high that preparing for high prices was unaffordable. My WAG was 5-10 years (based mostly on Laherrere)
My mistaken idea at that time was expecting $500/bbl oil, which in hindsight was pretty silly. $500 oil means unleaded is around $15/gal - who can pay that? Obviously there would be much much less demand and of course much less demand means no $15 unleaded. $100-120 is about as high as price can go at this level of consumption, it can go higher for a bit, and will go higher eventually, but that's it for this economy.
Which isn't to say that oil priced just beyond the reach of some is not a bad thing, merely that a price beyond the reach of "some" is not necessarily beyond the reach of all. That was MY mistake, thinking everyone would be priced out at once, but they won't, only the marginal consumer. The key then is not to outrun depletion, just outrun the other guy.
The biggest event in the 10 years of this board has been fracking, not for oil (which I think requires prices much higher than this economy can afford) but for nat gas. If gas production had peaked as was forecast in the early oughts we would certainly be in a world of hurt. As it is electricity generation from nat gas has doubled from 15% to 30% of the total. What is that, 5 times the increase of PV/wind?
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