I am sure he also meant as the cost of crude rises, it becomes economical
vialbe to extract oil from less desirable and thus more expensive oil
fields, such as many oil fields in the SW and the shale oil fields.

If he didn't mean that, he should have.

--

Reggie


"RCE" wrote in message
...

wrote in message
oups.com...

RCE wrote:
wrote in message
oups.com...

RCE wrote:
Again, stolen from another NG, the following is a portion of an
article
published in the "Economist".

It seems to refute some of the Peak Oil doom and gloom arguments.

---------------------------------------------------------------------------

There was an article in the latest Economist about this. Here's
a little of it:

As oil production slows,
prices will rise up and down the futures curve, stimulating new
technology and conservation. We might be running low on $20 oil,
but for $60 we have adequate oil supplies for decades to come."


----------------

$60/bbl for "decades to come"? How far from the wastebasket does one
need to stand to score 3 points with a paper wad?


According to his theory, $100/bbl will add a couple of more decades of
availability.

RCE

I don't know when that theory was expounded, but that $60/bbl oil
lasted maybe a few weeks or months. Certainly not "decades". We're
closing in on $80.


Chuck, the author was not claiming that a certain price would last for
decades. His point was that the higher the price, the longer remaining
oil supplies will last.

RCE