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Investing for Peak Oil Surviving Peak Oil financially is a problem we will all confront sooner or later.

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Old 09-19-2011, 07:28 AM   #1
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Default Peak Oil Has A Fatal Flaw

Daniel Yergin, chairman of IHS Cambridge Energy Research Associates and a Pulitzer Prize-winning author, argues in a WSJ.com Saturday Essay that Peak Oil theory has a fatal flaw, which is rooted in Hubbert’s (the man who came up with the idea of peak oil) blind spot: economics

http://online.wsj.com/article/SB1000...LEFTTopStories
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Old 09-19-2011, 03:13 PM   #2
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Actually, the biggest flaw is that it does not really account for the substitution effect. At some point, oil prices become high enough that it becomes economically viable to manufacture synthetic gas from coal and other sources. As prices rise, people will turn to other sources of energy reducing demand for oil. Peak oil proponents are not very keen observers of history. For example, I don't see a sperm whale lamp oil or peat shortage.
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Old 09-19-2011, 07:23 PM   #3
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Quote:
Originally Posted by Sysiphus
At some point, oil prices become high enough that it becomes economically viable to manufacture synthetic gas from coal and other sources.
That number is pretty high with any extant process—which is the point. We'll never run out of oil. What has peaked, already, is cheap oil.
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Old 09-19-2011, 07:56 PM   #4
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Other flaw?

We keep finding MORE of it..,
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Old 09-19-2011, 09:43 PM   #5
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And yet the price doesn't ever seem to fall for long.
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Old 09-20-2011, 02:17 PM   #6
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Rebuttal to Yergin:

http://www.energybulletin.net/storie...y-and-rebuttal
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