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Page added on July 1, 2012

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WSJ: Has Peak Oil Actually Peaked?

WSJ’s Liam Denning takes a seat on Mean Street to attempt to answer the question, has peak oil actually peaked?

2 Comments on "WSJ: Has Peak Oil Actually Peaked?"

  1. Kenz300 on Sun, 1st Jul 2012 11:26 pm 

    China and India are the driving force in oil prices. Their continued GDP growth at 6 or 8% a year will keep demand for oil growing even with a slowing in demand from the US and Europe. The price of oil will go up and down along with the growth or lack of growth in the world economy. The short term price is anyones guess. The long term trend is still higher. Shale oil and tar sand production costs are still much more expensive than conventional oil. Oil producers will not produce it at a loss.

  2. keith on Mon, 2nd Jul 2012 2:50 am 

    I think EROEI is an important factor because what allows shale oil and tar oil to be developed is the sweat crude easy oil we still have left. The remaining sweat crude production allows shale and tar oil to piggy back onto it each and everyday to make a profit. Remove the sweat crude from the equation and now you have expensive, hard to get to oil with low EROEI. The price would be astronomical if these sources were the only ones. The demand-supply curve would be shot. No one would pay those prices which in turn would make the prices go even higher. It is the presence of the remaining sweat crude which allows these other new tech oil extraction methods to work. These methods alone would never survive, they are creating a cushioning effect for us as we slide over the hump of peak oil. At what point in the slide down will these methods become impossable to financial do? That’s what I wonder. The amount of sweat crude left will determine that timeline.

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