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Where I would say that peak oil is about exactly the points you raised, and has nothing to do with running out of oil. The "peak" refers to the point where oil
by randomdata 13y ago
Where I would say that peak oil is about exactly the points you raised, and has nothing to do with running out of oil. The "peak" refers to the point where oil becomes so expensive that demand wanes and production starts to decline.
- rayiner 13y ago"Peak" in peak oil, at least as I understand it, refers to "peak rate of extraction." Or at least that's what Wikipedia says. Re: "peak price" -- the punchline is that demand is almost inelastic!
- mark-r 13y agoUnfortunately it's not inelastic, we saw this in 2008. As prices go up the economy tanks, as the economy goes down demand goes down.
- randomdata 13y agoThey are one in the same, really. The rate of extraction is driven by demand, which directly equates to price (supply and demand). As oil becomes harder to find, it becomes more expensive, but extraction rates can continue upward until the very last drop if people are willing to pay the price.