Originally posted on daryanenergyblog:
Figure 1: Recent trend in global oil production [Source: Gail Tverberg, Our Finite World, 2012] A recent drop in world oil prices, has seen prices descending past the symbolic point of $50 a barrel. This is likely to prove a double edged sword, as I think we’ll all be learning soon enough. However, it has also led to yet more fuel to the self perpetuating myths regarding unconventional fossil fuels, with many in the media crediting Shale gas and shale oil with causing this price drop. Peak oil apparently is now dead.
Figure 2: Brent Crude Oil Prices since 2007 [Source: Shortsideoflong.com, 2015] Part of the problem here is that many forget that the price of any commodity merely reflects the current state of supply and demand for that commodity. Let us suppose for example, that you were to wander into a butcher’s shop on Christmas eve…
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