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Peak Oil R.I.P.?

- Tim Iacono - Iacono Research

The problem with the whole arguement about Peak Oil is that it centers around how much oil does or does not exist and what can or cannot be produced. It should be about how much it costs to recover. Yes, there is alot out there, and there will be more if you can wait a long, long time...The key is to understand Energy Returned on Energy Invested (EROEI) Historicaly, Saudi Oil costs from $1-$2 per barrel to produce light, sweet crude, the most desireable and least costly oil to process, whereas Shale Oil comes in at about $100 per barrel including capital costs for heavy sour crude, which is very expensive to process. And don't forget the 1-5 barrels of fresh water needed for each barrel produced.
So let go of all your Socio-Politcal baggage and objectively ask yourself "Will a 5000% to 10,000% rise in production cost in any commodity have an effect on market price?"
It's math. Math does not care if you are a conservative or a liberal. It doesn't care if you are American or Iranian. It doesn't care if you spend your time online or in the library trying to learn something new, or if you do it just to reinforce what your emotions tell you must be the truth. Math just... "is".

Commented 4056 days ago

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Beginning of the headline :From the Economist’s Daily Chart feature comes this view of U.S. oil production that, much to the surprise of peak oil proponents, is taking on a remarkable resemblance to the Pollyannaish view of things back around 2005 when this issue first garnered national attention following Hurricane Katrina. Also see the following items from the earlier links post as there appears to be a growing consensus (that may or may not prove correct) that we are back to an era of energy abundance: Is the Theory... Read More

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