Exploring Hydrocarbon Depletion
onlooker wrote:A price retreat of -2.10 . Will be interesting to watch how the rest of the week goes.
shortonoil wrote:"ETP is not intuitive. Short, have I paraphrased you correctly? did I get that right?"
It won't be until you begin to think in energy terms rather than dollars. Dollars are confusing because they have no built in constraints. In dollar terms one could argue that the moon is made out of green cheese! They are an artificial construct with no limits; the world can always print up some more dollars; printing BTU is a little trickier!
marmico wrote:By our calculations it would presently take about $125/ barrel to get that oil out of the ground.
You don't know how much energy a refinery consumes per barrel processed
marmico wrote:U.S. Geological Survey Assessment of Reserve Growth Outside of the United States
This petro dollar change is over blown. As long as the USA produces eight to ten million Barrels per day and consumes twenty million barrels per day the price of oil traded in US dollars will be the benchmark. Other countries may conduct sales using their own currencies but both buyer and seller will always have an eye open to what the same deal could be transacted for in dollars and would baulk when they began to be taken advantage of.Quinny wrote:I'm supportive of the ETP model in principle and believe I understand the thermodynamics (toa certain extent).
I still don't understand the link to finance and the Maximum affordability function hence my previous questions about command economies. I am disappointed that the only responses I have had previously are basically put downs from the 'anti ETP' brigade.
If the dollar loses it's 'petrodollar' status and devalues, then surely that would 'break' the ETP price curve.
If not - why not?
I'm not an ETP knocker, and believe it helps explain some of the issues round the lack of serious price increases in what I believe is post peak.
Users browsing this forum: No registered users and 3 guests