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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (135372)	6/2/2004 5:28:52 PM
From: Ilaine	Read Replies (3) \| Respond to of 281500

Unfortunately, peak production is coinciding with peak consumption. Duh? Isn't that sort of self-explanatory? Why would anybody voluntarily produce something he can't sell? Or, to flip it around, how do you consume something that hasn't been produced? Next year, when consumption is even higher, won't production be higher, too?

To: carranza2 who wrote (135372)	6/2/2004 6:04:41 PM
From: quehubo	Read Replies (1) \| Respond to of 281500

I dont think it matters whether peak oil supply capability is now or over the next 5 years. I do think it is important to realize that there is maybe very little reserve production capacity available to meet even next quarters demand. Q2 demand is the lowest demand period of the year. The main significance here is that easy new production capability wont be cheap and the days of cheap oil are for the most part past us. Incremental demand has risen rapidly over the last year as oil producers have worked hard to maintain present production levels and maybe make some incremental supply increase. I think we are beginning to feel the real pinch now and the pain will only increase. Natural gas in the USA has already peaked and the pain is quite severe. Dont worry about politics, they will only make us richer.