We'll Need Less Even as We Make More

You’ve heard it.  I’ve heard.  How could you NOT hear it?

We are gonna run out of oil!

We’re not.  We never will.  The concept of peak oil is something that I am relatively new to, but have embraced with interest.  I should have always known how this would end, I learned it back in grade school.  See, the kid down the street got his brother’s football cards.  His brother had moved out, didn’t want’em and just gave ’em to this kid.  As he was going through them, he found not one, not two but THREE Walter Peyton rookies!  He immediately set up shop, put out a shingle and began taking offers for the three gems.  While he was a bit unsophisticated, he didn’t market himself well.  That being the case, he was able to demand a good price for each card.  And I remember watching in horror as each card was traded, the value of the next card went UP!  By the time he was taking offers on that third card, he was able to demand nearly double the price as the first.

Now, imagine that same exercise but with a consumable perfectly knowledgeable market.  Shoot, the price of those last remaining barrels of oil would be so high that it would…force us to find another commodity to do what oil does; and cheaper.

The result:  Oil will be replaced before it runs out.

Now, combine this with the fact that some people feel we will never need as much oil ever again:

Oil use in rich industrialized countries will never return to 2006 and 2007 levels…

So, just as we are beginning to see the emergence of natural gas as a viable solution, we can report that, at least some, people believe we are walking away from oil.  This will make oil cheaper, not more expensive.

And THAT will piss Mr. Obama off.  heh

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