Thread: Has 1080 by kill struck again

We were told we were at peak oil production years ago and to expect oil prices to rise and rise and rise...... yet diesel is 2/3 the price it was a few months ago?

Originally Posted by veitnamcam

We were told we were at peak oil production years ago and to expect oil prices to rise and rise and rise...... yet diesel is 2/3 the price it was a few months ago?

Peak oil refers to conventional peak oil, its conventionally extracted oil from a "traditional oil well", think Saudi Arabia, it was 2005~2006. What has happened is US shale oil has produced 4mbpd masking the conventional decline, til now. However the shale drillers are going bankrupt or are stopping drilling due to the price collapse of the over-supply they created. So final peak oil including shale and Canadian tar is looking this year or next. What you will see is a rising price which when it gets to about 6% US GDP causes a recession and hence loss of demand causes the price to collapse. So what you will actually see probably a saw tooth effect and not a sustained high price. Oil has by the looks of it bottomed and is pushing $57 so your tank fill is going back up.