Not at $100 a barrel! But if oil was only $36 a barrel? Yes, that's the fly in the ointment isn't it? The demand is for inexpensive, high quality oil. If the price of water goes up enough, demand will fall of it too. Poor people will die of dehydration while wealthy people stand around saying, "You see, there is plenty of water. We could make more but demand has fallen off."
The world economy is still in a recession. As far as I know Saudi Arabia has reduced its oil extraction to keep the prices for oil up. Other 'producer' nations might do the same. Oil prices and oil extraction are certainly in some way a function of the economy. Nonetheless I am convinced that we entered the downslope of the global Hubbert curve for conventional oil last year. A new age has started. We shouldn't waste our time with the illusion that there are huge undiscovered oil fields left.
Saudi Arabia is PAST peak and has been for a long time. They keep saying they can produce more oil IF there is a demand for it, but what they don't tell you is that the additional oil they have to offer is SOUR. The cheap, light, sweet crude from onland fields is definitely PAST peak. They have offshore wells now, but they will only operate them IF the price goes up. Offshore costs a lot to operate and we will see production go up a bit IF price drive, but we will NEVER see 74 MBpd again.
Actually Saudi Arabia just annonced they would increase production a couple of days ago, and prices are moving down. Probably partly also because of other bad market news recently.
But there's no doubt in my mind the long term trend is up, up, up... No other way to go with the details of Peak Oil staring you in the face.
Very interesting. There's no way for costs to stay down as demand exceeds supply. For now, we are probably benefiting, so to speak, from the deflationary pressures in the economy. If/When all that money the banks have stashed at the Fed makes its way into the economy, it looks like prices for oil and at the pump in particular will skyrocket.
no need for increasing production.
TheGeologist1 1 year ago
@TheGeologist1
Not at $100 a barrel! But if oil was only $36 a barrel? Yes, that's the fly in the ointment isn't it? The demand is for inexpensive, high quality oil. If the price of water goes up enough, demand will fall of it too. Poor people will die of dehydration while wealthy people stand around saying, "You see, there is plenty of water. We could make more but demand has fallen off."
zthustra 1 year ago
Good video and nice name we got somethings in common
nietzschealive 1 year ago
Good video, nice name also we got somethings in common
nietzschealive 1 year ago
what a great video, i would like to re-upload this to my channel as i have been talking about peak oil in the past.
of course there would be a link to your channel and everything.
kurtilein3 2 years ago
The world economy is still in a recession. As far as I know Saudi Arabia has reduced its oil extraction to keep the prices for oil up. Other 'producer' nations might do the same. Oil prices and oil extraction are certainly in some way a function of the economy. Nonetheless I am convinced that we entered the downslope of the global Hubbert curve for conventional oil last year. A new age has started. We shouldn't waste our time with the illusion that there are huge undiscovered oil fields left.
Bernd1964 2 years ago
Saudi Arabia is PAST peak and has been for a long time. They keep saying they can produce more oil IF there is a demand for it, but what they don't tell you is that the additional oil they have to offer is SOUR. The cheap, light, sweet crude from onland fields is definitely PAST peak. They have offshore wells now, but they will only operate them IF the price goes up. Offshore costs a lot to operate and we will see production go up a bit IF price drive, but we will NEVER see 74 MBpd again.
zthustra 2 years ago
Actually Saudi Arabia just annonced they would increase production a couple of days ago, and prices are moving down. Probably partly also because of other bad market news recently.
But there's no doubt in my mind the long term trend is up, up, up... No other way to go with the details of Peak Oil staring you in the face.
bdist 2 years ago
Saudi Arabia has been announcing that they will increase production for a couple of years now. Don't hold your breath.
zthustra 2 years ago
I love data.
jokidder 2 years ago
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DecentralizedByGuilt 2 years ago
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DecentralizedByGuilt 2 years ago
DBG, you're a bright person but I'm thinking you haven't looked closely enough at the Peak Oil issue.
Are you suggesting that an entire planet has slowed down oil production for the last five years so that the price would go up?
This isn't a theory with a one dimension, ie production. There is science behind this. Production is just one indicator.
The people who are the loudest voices in Peak Oil are not economists, they are petroleum geologists, engineers and industry experts.
zthustra 2 years ago
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DecentralizedByGuilt 2 years ago
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DecentralizedByGuilt 2 years ago
Very interesting. There's no way for costs to stay down as demand exceeds supply. For now, we are probably benefiting, so to speak, from the deflationary pressures in the economy. If/When all that money the banks have stashed at the Fed makes its way into the economy, it looks like prices for oil and at the pump in particular will skyrocket.
kevinanity 2 years ago