To the extent that oil demand goes down in the future, it will go down because people can’t afford oil distillates at the price producers need to produce the corresponding oil.
$50 per barrel oil is clearly less impossible to live with than $30 per barrel oil, because most businesses cannot make a profit with $30 per barrel oil. But is $50 per barrel oil helpful?
The underlying assumption in peak oil models is that scarcity would appear before the final cutoff of consumption.
A person often reads that low oil prices–for example, $30 per barrel oil prices–will stimulate the economy, and the economy will soon bounce back. What is wrong with this story? A lot of things, as I see it…
A gradual switch to higher-cost energy products, in a sense, works in the opposite direction to a switch from beef to chicken.
How important is oil to the future of the global economy?
Could the price of oil be a value such that the current quantity produced exceeds the current quantity consumed?
The Peak Oil story we have been told is wrong. The collapse in oil production comes from oil prices that are too low, not too high.
A midweek roundup. After a five-session losing streak, oil prices reversed on Wednesday, climbing about a dollar a barrel in New York and London to close at $58.98 and $65.03 respectively
OK. Which curve on this chart is not like the others? It’s the U.S. and Canada’s oil production curve over the past several years.
But another reason oil prices have slid so much is weakness in demand for the product, which may be related to a slowdown of overall world economic growth.
How far the oil price will come down and for how long it will stay “low” is now anyone’s guess. A declining price results from weakening demand while supplies are improving.