Pops wrote:...
But at any rate, most of the questionable reserves revisions are in countries with NOCs and no independent auditing and I've never seen an explanation for that aside from simple coincidence.
wrote:7. Increasing oil prices decrease oil demand° by reducing the amount of oil consumers can afford to purchase. [Supply and Demand]
Pops wrote:...I'm not sure you can say for sure much more than 'no one knows' without it being speculation, can you?
...
a point made several times is the bump coincides with the point at which OPEC changed the manner by which calculation of production allocations would be handled. One entirely credible possibility is that they included probable reserves with proven as the criteria. This would explain a sudden bump of this nature.
4. Increasing energy expended in finding, developing, extracting and refining oil reduces the 'net energy' available for work.
kildred590 wrote:4. Increasing energy expended in finding, developing, extracting and refining oil reduces the 'net energy' available for work.
It's much more important than that.
It reduces "net labour"
Labour drives growth (a commodity has no value until labour is applied).
So a reduction in labour will reduce the money supply (which is what we are seeing right now).
Keith_McClary wrote:I know this isn't about countering the standard cornie talking points (that's your next assignment ),
No 4 is talking about how much energy is left over to use once you subtract the energy required to produce whatever is the final product - crude oil lets say. All the energy used to explore, drill, pump, refine, etc.
So if it takes 20 BTUs input to produce 100 BTUs of gasoline, you are getting a better Energy Return on Energy Invested than if you must put in 40 units to get 100 units out - 80 net units vs 60 net units.
The upshot is that as conventional, onshore wells (like the gusher in Giant) become extinct and we expend more and more energy on harder and harder oil, eventually we'll be using more than we're getting.
kildred590 wrote:This is basically an economic argument.
spot5050 wrote:A suggestion for basic fact no. 11;
Short-termism
11. Humans think short-term.
We have labels for previous generations eg. "stone-age man" and "iron-age man". Future generations will call us "hydrocarbon-age man".
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