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"What is instead happening is that demand for oil has peaked before supply for oil has peaked." Demand for oil at the old price level peaked, but I bet if you
by pmoriarty 6y ago
"What is instead happening is that demand for oil has peaked before supply for oil has peaked."
Demand for oil at the old price level peaked, but I bet if you sold oil for 1/10th or 1/100th of the price, there'd be plenty of demand for it.
So what's really changed is the price that people were willing to pay for oil. The demand is still high, but the price people are willing to pay for it is lower than before.
- mlyle 6y agoYah, that's exactly it. Supply and demand curves describe the supply and demand at given prices. We thought the number of units of oil supplied was going to eventually permanently fall primarily from the supply curve shifting up and to the left. But then the fracking revolution happened, and it looked like maybe introduction of artificial measures to shift the supply curve upwards (carbon taxes) might be required-- to purposely reach peak oil. But now we have this situation where instead the demand curve has shifted rightwards instead... Permanently? Temporarily? Who knows.