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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 12-29-2010, 12:01 PM   #1
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Default Is Peak Oil a Government Induced Crisis?

The essayist contends that governments' mis-allocation of resources will be the cause of a peak oil crisis.
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Old 02-09-2011, 06:52 AM   #2
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Irrespective of the assertion in that article, which is that certain governments are preventing investment in oil production infrastructure, you can definitely say that peak oil is a government-induced crisis in the sense that most governments subsidize consumption in general, and that many subsidize oil consumption directly (China, India, many Middle East countries).

The governments that do tax oil consumption really only do so in order to transfer consumption from one end-use to another (eg. from gas taxes to asphalt road construction). The total consumption is almost always increased, not decreased. These government actions, increasing total oil consumption, will ultimately make peak oil much, much worse when it does come.

I don't have numbers, but my gut instinct is that this effect will tend to dwarf the effect of any other regulations, including environmental ones that limit production investment, which are somewhat weak even in developed nations and totally absent in most exporting ones.

In general, though, with respect to this article, there is a trade-off in terms of the timing of peak oil versus the intensity of it's impact. Governments that restrict production rates are lessening the intensity of the crisis in exchange for precipitating it sooner. Which in my opinion is a perfectly rational course of action.
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Old 02-09-2011, 12:35 PM   #3
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I imagine a great government and oil company conspiracy to LIMIT the amounts of domestic oil produced in order to drive up the prices for future years..,
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Old 02-09-2011, 12:44 PM   #4
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The govts in the nations that produce significant oil are extremely dependent on oil revenue and are not holding back production. Quite the opposite. Nations like Brazil, Angola, Russia, Saudi spend huge amounts of their national federal resources in the pursuit of oil production. All the people in power have strong incentives to sell oil. This is true now, at $90/barrel, more than ever before.
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Old 06-05-2011, 07:28 PM   #5
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Speaking of Brazil ....

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Old 06-12-2011, 06:17 AM   #6
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Charts prolly a little out of date .

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