My good friend Jim Watters  turned me onto Erick Erickson’s website a month or so ago, been enjoying it a lot so far.  Wanted to share this with my readers as I thought it was quite funny.  The excerpt is from an article about oil supply and the fallacies that have been long standing on old science and leave out economic factors. Something you think would be kind of obvious when it comes to any good in the marketplace.

Oil resources are not infinite, and it is unarguable that most of the easily accessed, conventionally producible oil has already been discovered. I agree with Yergin’s conclusion, that rather than “Peak Oil” we may be entering a period of “Plateau Oil”. Instead of a symmetric bell-shaped curve, we are on a limb of the curve that flatten or grow slowly for some time. Reserves will be added at the economic frontier, where the search for reserves is justified whenever the marginal cost of finding and developing is less than the current market price. Ultimately, if we let free market forces dictate, new technologies will replace hydrocarbons at such time as they achieve a lower price in the marketplace.

Or, in a more likely scenario, politicians will muck up the whole thing, thinking they will be the first beings in the history of the planet to outsmart the law of supply and demand.

 

The full topic is found here.

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