<DrumBeat: February 27, 2008 The Oil Drum North American Natural Gas Production and EROI Decline>

35 comments on This Week in Petroleum 2-27-08

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westexas on February 27, 2008 - 1:35pm Permalink | Subthread | Parent | Comments top

I think that the supply problems in China were primarily related to price controls. In regard to shortages elsewhere, I think that it is simply demand destruction progressively moving up the food chain.

Let's assume a geometric progression in crude: $50, $100, $200, $400 . .

This results in a geometric progression in gasoline: $2, $4, $8, $16. . .

As (IMO), net oil exports decline, the refiners in importing countries are caught between these two geometric progressions. They have to balance higher crude oil prices against the declining number of consumers who can and will pay the higher product prices.

With continuing apologies to several literary figures:

"Ask not for whom forced conservation comes, it comes for thee."

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memmel on February 27, 2008 - 2:33pm Permalink | Subthread | Parent | Comments top

Another way to look at it is to consider gamblers the first one off the table is the one that runs out of money.

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35 comments on This Week in Petroleum 2-27-08

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