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Exactly. Prices rise when demand outstrips supply and people respond by seeking alternatives and by doing more exploration. We'll never truly run out of oil a

Exactly. Prices rise when demand outstrips supply and people respond by seeking alternatives and by doing more exploration. We'll never truly run out of oil as long as there is a free market. It will just keep getting more expensive. The runup in oil prices that finally turned around in 2008 had nothing to do with long term supply but was caused too much easy credit overheating the economy.

maxharris 17y ago
Unfortunately, we don't have anything like a free market in America, and we haven't had it for over a century. The correct term for what we have is a mixed economy, meaning a mix of (increasing) regulation, control and (diminishing) market forces. Having said that, I do agree that oil will simply get more expensive, and that we won't simply run out of it.
- stretchwithme 17y ago
  we do have something like the free market in the US. its distorted, compromised, partially outlawed to be sure. the real estate bubble and its collapse were certainly caused by a perfect storm of market distortions, many of which are still with us. but prices for many things, including oil, are set freely and that is the element of the market relevant to the existence of the supply of oil
Sukotto 17y ago
It was also due to people treating oil as a currency hedge instead of a fuel or raw material.
brc 17y ago
Don't forget a lot of the run-up in prices was due to a fall in the USD, which the oil prices are quoted in. Countries with resource-exporting economies (like Canada) did not see anything like the percentage increase in fuel prices at the pump that the USA saw.
- stretchwithme 17y ago
  The fall in the US dollar IS the same problem. When the Federal Reserve pumps too much money into the economy, the value of the dollar drops and prices rise. Inflation is the economy overheating.
wanderr 17y ago
/We'll never truly run out of oil as long is there is a free market/ That is a completely absurd statement. Oil is a finite resource that cannot be reused (at least when it is used for its main purpose). By definition it /must/ run out someday. We can hope to keep pushing that date back, but not forever.
- erikpukinskis 17y ago
  http://en.wikipedia.org/wiki/Asymptote http://en.wikipedia.org/wiki/Asymptote
- stretchwithme 17y ago
  I disagree. Can you name something we've completely run out of? Believe me, if gasoline costs you $50 a gallon, you'll be walking everywhere by choice. You'll pay $10 for a bus ride and love it. R&D will be in overdrive. This is not the first time human beings have encountered a scarce resource.

maxharris 17y ago

Unfortunately, we don't have anything like a free market in America, and we haven't had it for over a century. The correct term for what we have is a mixed economy, meaning a mix of (increasing) regulation, control and (diminishing) market forces. Having said that, I do agree that oil will simply get more expensive, and that we won't simply run out of it.

stretchwithme 17y ago
we do have something like the free market in the US. its distorted, compromised, partially outlawed to be sure. the real estate bubble and its collapse were certainly caused by a perfect storm of market distortions, many of which are still with us. but prices for many things, including oil, are set freely and that is the element of the market relevant to the existence of the supply of oil

Sukotto 17y ago

It was also due to people treating oil as a currency hedge instead of a fuel or raw material.

brc 17y ago

Don't forget a lot of the run-up in prices was due to a fall in the USD, which the oil prices are quoted in. Countries with resource-exporting economies (like Canada) did not see anything like the percentage increase in fuel prices at the pump that the USA saw.

stretchwithme 17y ago
The fall in the US dollar IS the same problem. When the Federal Reserve pumps too much money into the economy, the value of the dollar drops and prices rise. Inflation is the economy overheating.

wanderr 17y ago

/We'll never truly run out of oil as long is there is a free market/ That is a completely absurd statement. Oil is a finite resource that cannot be reused (at least when it is used for its main purpose). By definition it /must/ run out someday. We can hope to keep pushing that date back, but not forever.

erikpukinskis 17y ago
http://en.wikipedia.org/wiki/Asymptote http://en.wikipedia.org/wiki/Asymptote
stretchwithme 17y ago
I disagree. Can you name something we've completely run out of? Believe me, if gasoline costs you $50 a gallon, you'll be walking everywhere by choice. You'll pay $10 for a bus ride and love it. R&D will be in overdrive. This is not the first time human beings have encountered a scarce resource.