The argument on the biogenic or abiogenic origin of oil is a fascinating study. Gold believes Oil and Gas came to the earths surface due to the structural defects in the crust such as with the collisions with asteroids.
Yes, what struck me the most was his theory of "refilling", (cavities where extracted reserves existed, get refilled by the pressure of deeper pockets of the same minerals). If this proves true, then it throws out the window the previously accepted fact that we would soon "run out of fuels".
Proven reserves, (most importantly, of natural gas --given its clean burning), may be adjusted to the upside by considerable amounts. If so, I am sure this would affect its price. ONTH, increased demand, given the earlier mentioned world population growth, and industrial/domestic needs will balance thing out. [Ah yes, but markets will make sure to make the theoretical balance more intriguing, exiting and harder to figure out -- as usual]. |
