Rising gas prices fuel e-tailer anxieties

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Two problems with that prediction.

First, the same prediction that we were going to run out of oil shortly has been made since at least the early 1970s. Just like Global Warming advocates get noiser during the hottest part of the summer, those crying "peak oil" get noisiest during short term price spikes. If you had asked people during each of the last (relatively short) periods of high gas prices if they expected them to come down, they would have been very wrong.

Second, while it is true that eventually we will find (at least some, perhaps all) oil reserves more expensive to recover than they are worth, this is a gradual process. Not all wells will become economically unproductive at the same time (depending on the size of the field, how long in production, and how quickly it is being drawn), but each field will see the cost of extraction rise over time as it approaches this state.

Posted by: enduser_z   Posted on: 08/19/05 You are currently: a Guest | Members login | Terms of Use

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