The "Peak" is real. What you are seeing now is the intersection of the rise in alternative oil sources with the "Peak" and decline of more traditional sources and the effects of an economic growth slowdown on oil demand.
That said... we'll go through one peak, switch to another source, go through that peak, and hope that there'll be another peak after that. In effect, we're going to be seeing more of a plateau, but the gist of the theory, that oil supply is finite, is still correct. We're already on the downslope of production for "conventional" (read: cheap) oil, and once Saudi Arabia is trhough throwing its oil-glut temper tantrum, we'll be right back at $60-$80 fracking oil, until that runs out and we have to transition to riskier-to-develop $100 oil sources.
Quote:
Originally Posted by jamesqf
Why? If there's too much oil on the market, just turn the shutoff valve on some of your wells. Which I expect Saudi Arabia to do any time now...
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Iran has already said it's willing to talk terms with Saudi Arabia. And hopefully the trigger point for the number of US wells closed has been reached on the Kingdom's game plan charts...
In the meantime, oil companies are shedding jobs like trees in autumn. Not a pretty sight if one of those jobs is yours!