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There is a demand problem, not a supply problem.

Those whom the Gods wish to destroy They first make mad. -- Euripides
by Migeru (migeru at eurotrib dot com) on Mon Dec 18th, 2006 at 02:56:25 PM EST
[ Parent ]
That is just such an odd comment.  When an economist looks at a demand and supply chart, and it shows, for example, climbing prices,,,,he would not look at one part of the chart, and say that is the problem.  That is of course what you are doing  when you say that.  

Note my five suggestions have three on the demand side, and two on the supply side.  It's just not rationale to eliminate half the options.  Certainly increasing the supply of oil helps the situation--I'm not saying that it solves the situation, only that it helps.  And the new technologies that are being developed will have the effect of shifting the supply curve.

Historically cheap oil has made it impractical, in a capitalist society, for the investments in new technologies to be made that will shift the supply curves.  This is an area where visionary public policy could have seen the situation, and made policy decisions that would have smoothed the transition.  Obviously that didn't happen, and the road to change is going to be bumpier than it might have been.  But what's new with politicians that either lack vision, or lack courage because often vision requires short term pain--anathema to politicians--(see social security and healthcare for the aging).

by wchurchill on Mon Dec 18th, 2006 at 03:22:53 PM EST
[ Parent ]
I don't really follow...

It's peak oil supply. Peak oil demand is nothing to worry about. If prices stay reasonable, demand is almost infinite.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Tue Dec 19th, 2006 at 07:47:27 AM EST
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