Comments RedPillGuy has made

Price Fallacy

When it takes more than 1 barrel of old (previously-extracted) oil to extract 1 new barrel of oil (oil rigs use oil as their primary source of energy), there is no price at which it makes sense to extract new oil. If the geniuses in the White House and its counterparts around the world don't get that, you can at least halve all estimates of how long we will have oil to support our unsustainable ways.

I suspect that, well before this situation develops, those with real power will be sequestering oil for use by those they deem to be higher priority than you and me. Militaries and black marketeers with back-door access to the corridors of power come readily to mind, and no doubt there would be a few 'special friends' in there too.

It's possible that such sequestration has been going on for some time - perhaps even as long as Saudi Arabia has been promising to increase production but hasn't - and if that's true, then a day of serious reckoning may not be far off. Let's hope this scenario will be consigned to the conspiracy theory bin...

Bottom line: Price isn't the most reliable indicator of peak oil. Watch instead the oil producers' behaviors, particularly investment in infrastructure, and get ahead on your Prosperity Plan for a Post-Carbon Future.On Oil execs questioned on high oil and gasoline prices posted 1 year, 8 months ago 7 Responses