So why has production been essentially flat for three years while oil has gone from $30 to $94 (according to you this increase in prices should have caused production to increase)
That’s 0% increase in production
300% increase in price
Seems that your argument is missing something
Ugh. The price increase makes it more attractive to extract more expensive oil– but the time/cost of new wells is high. For sure, if prices stay high, production will keep increasing–not forever, I never said that, but for now.
BTW, if you want to see the impact of high oil prices, look at exploration companies like Dawson Geo and OYOG, they have been doing quadruple the business of the previous five years.
As far as missing something-I think you are missing something, data:
Daily production (thous. barrel per day)
2002: 74496
2006: 81663
Last time for my original point, before getting bogged down in explaining things I never said–many people throw around the Hubbert Peak to predict the end of oil. It is not, and was never the purpose of the Hubbert Peak. It was based on the ability to extract cheap oil, written by an employee of an oil company, showing that the US was running out of cheap oil, thus encouraging more international exploration. We (the world) will run out of cheap oil way, way, way before we run out of oil that is cheaper to extract than the energy it costs.
Yes, the price will rise, and the economic consequences could be severe, but we are not about to run out of oil–possibly we are on the cusp of running out of cheap oil.
