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View Diary: Obama administration to release oil from strategic petroleum reserve (96 comments)

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  •  I'd disagree (0+ / 0-)

    The high oil prices exacerbated the 2008 economic crash, and high oil prices now are inhibiting recovery.  Price comes out of a relationship between supply and demand, and peak oil says that demand growth will lead to price increases in the absence of supply growth.  These price increases will lead to demand dropping.  In a perfectly efficient economy there would be no boom/bust, just a steadily rising price, but modern economic markets are still plagued with inaccurate pricing mechanisms.

    "Peak Oil" simply talks about the supply side of the economic equation, it takes a little more effort to see how the supply side impacts those things that are more directly observable to us.

    •  OK (0+ / 0-)

      But the supply depends on price, if the price of oil was higher the supply will grow because there is oil out there right now that is not that cost effective to extract. When the barrel goes over $120 it will be.

      The fight is to keep the price low enough so alternative energies are not promoted hastily, but other producers want the price high now. So at the end what matters here is the price during the transition

      •  Supply in this case has nothing to do with price, (0+ / 0-)

        other than to affect the pace at which we use it up. The term "Peak Oil" is used to define when the actual supply of this finite resource--in other words, the amount of oil itself in the ground--can no longer be seen as increasing or plateauing, regardless of human efforts to retrieve it.
        Let's say there are 1 million barrels of oil in existence, and we've found and withdrawn 499,999 barrels of it. The peak will be passed after we get that next barrel out of the ground, irrespective of how much that barrel costs anyone.

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