r15757@aol.com
12-31-1969, 08:00 PM
On May 26, 10:07 am, Ron Ruff <rruffrr...@yahoo.com> wrote:
> Baloney. If production declines it is *only* because demand has been
> reduced by high prices. The same thing happened in 1980 for the same
> reason. We weren't out of oil then and we aren't now. The current
> increase in the price of oil is 90+% due to market manipulation. When
> the cost of *extraction* rises then you can say that it is due to a
> dwindling of the resource.
Production isn't declining, not yet anyway. We'll never be 'out of
oil.' But production has pretty much stopped growing over the past two
years, as prices have skyrocketed. See, you don't even need to reach
'Peak Oil' for the fireworks to start. All that you need is for supply
to fail to keep pace with demand, and that is what is happening.
We can point fingers all we want. That doesn't make much sense if we
continue to burn the resource as if it were in completely unlimited
supply. As supply and demand has gone out of whack, the price will
continue to rise until it causes enough demand destruction to balance
supply and demand.
Of course the price of extraction has gone up as the price of energy
has gone up. The prices for the refined products have not risen nearly
as fast as the price of crude. They have a lot of catching up to do.
> Baloney. If production declines it is *only* because demand has been
> reduced by high prices. The same thing happened in 1980 for the same
> reason. We weren't out of oil then and we aren't now. The current
> increase in the price of oil is 90+% due to market manipulation. When
> the cost of *extraction* rises then you can say that it is due to a
> dwindling of the resource.
Production isn't declining, not yet anyway. We'll never be 'out of
oil.' But production has pretty much stopped growing over the past two
years, as prices have skyrocketed. See, you don't even need to reach
'Peak Oil' for the fireworks to start. All that you need is for supply
to fail to keep pace with demand, and that is what is happening.
We can point fingers all we want. That doesn't make much sense if we
continue to burn the resource as if it were in completely unlimited
supply. As supply and demand has gone out of whack, the price will
continue to rise until it causes enough demand destruction to balance
supply and demand.
Of course the price of extraction has gone up as the price of energy
has gone up. The prices for the refined products have not risen nearly
as fast as the price of crude. They have a lot of catching up to do.