Rising Demand vs Peak Production

Thumper · Posted: Fri May 16, 2008 5:38 pm Post subject: Rising Demand vs Peak Production

I wanted to hear people's thoughts on the current rise in Oil prices and whether it is due to the increasingly rising Demand (from the many newly industrialized nations following the trends of the U.S.) or if we are actually seeing the soaring prices from the grand finale of Peak Production?

We could see demand based inflation in either scenario, but Peak Production would mean that there would be no chance for a slow-down. We would have more options if it were merely demand just rising too fast for production to keep up. (i.e. - tapping new oil reservoirs, creating new refineries, etc.)

cipi604

We have to wait for the last numbers from EIA/EIA , but i think the production is down.

mkwin · Intermediate Crude Joined: Jun 01, 2007 Posts: 569

I think production will be broadly the same. Exports will be slightly down and hypothetical demand up. if oil jumps to $140-150 a barrel the game is up and peak oil will be mainstream. Although it will be blamed more on lack of investment and soaring demand which is of course true but shortsighted.