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View Diary: Countdown to $100 oil (40) - Oil production plateauing (198 comments)

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  •  well price trying to ration to prevent shortages (2+ / 0-)
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    Sparhawk, theran

    actual shortages will send prices really soaring as consumers "panic" buy gas for their commute or vacation.  It's difficult to store so their is a limit to this.  However, I'm sure oil company officials want to avoid lines forming around the block for gas at stations that have it.  I was only 10 in 1977 but I remember the lines, and odd even days, and stations with signs "out of gas".  Even though it was expensive(in 70's prices) people still needed it.  

    I don't see state governments rationing yet but they are being irresponsible by not emphasizing more car pooling and other factors to reduce demand.  I think most fear getting smacked with a label of forcing you to make a sacrifice.  For now, the politicians seem to think they can focus all the blame on the oil companies, and they are exploiting the situation, but their is clearly more at work here.  and as Jerome's chart show, it would be incredibly stupid for an oil company to build a new refinery.  Thus the refinery squeeze and the increase in gas demand, however slight, are making for a witches brew.  But it all starts with the plateauing in the production oil.  PEAK   OIL  IS   HERE

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