PEAK OIL - The New Y2K or The Beginning of the Real End? Message Board

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Gold/Mining/Energy : PEAK OIL - The New Y2K or The Beginning of the Real End?

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To: I_C_Deadpeople who wrote (1093)	7/27/2006 2:11:43 PM
From: Don Earl	Read Replies (3) of 1183

RE: "a field that size has not been found for over 30 years." On the other hand, there are countries that are part of OPEC today that weren't even players 30 years ago. I've seen all the arguments before, and meaning no disrespect, I find them less than convincing. Did you see a supply disruption when 3 million barrels a day of Iraqi production was taken off line in March 2003? Or when Katrina shut down GOM production? Do you appreciate even a little bit the fact that the sole purpose of OPEC is to limit the flow of oil to price fix the market, and that when OPEC members cheat, prices tumble? Why is it that the oil peekers happily toss out any concept of supply and demand when formulating their theories, when for close to a century, supply has met demand year after year after year? Why do oil peekers find it so odd that countries are cutting deals to secure future supplies? If you ran a grocery store, you would certainly set up long term contracts for vegetables, and no one would start screaming that the end is near in the carrot market. If demand for carrots picks up, your supplier plants a few extra rows to pick up the slack. That's what the oil companies have been doing for decades and the only folks who find it odd are the oil peekers. Can you please explain the logic behind the theory that oil companies should invest in enough equipment to pump 120 million barrels of oil a day from reserves expected to last several decades, when they can only sell 78 million barrels a day? Or the theory that they must be running low because they only pump as much as they can sell? Isn't there a point where the proponents of such theories have to find the reasoning rather fuzzy even to themselves?

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