Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Joined: May 13, 2008 Posts: 6 Location: Atlanta, Ga, USA
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.)
Posted: Sat May 17, 2008 4:05 am Post subject: Re: Rising Demand vs Peak Production
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.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
News
Discussions
Resources
Members
Forum FAQ
Search
Usergroups
Profile
Log in to check your private messages
Log in
