ravi wrote:
> For a reality check: oil prices may be going down, but they are nowhere near
> what they were in say 2001 when oil was about $25/barrel. I believe the
> "peak oil" theory says that we are at max production, yes? The current drop
> in price is attributed to lower than expected demand, and perhaps also
> profit-taking? So the drop in prices need not refute "peak oil".

I didn't say anything about refutation.

BTW, if the current drop is explained by lower-than-expected demand
and profit-taking, we can just as validly explain the previous peak
prices by higher-than-expected demand and profit-seeking speculation.
Both fit well with inelastic supply in the short run. Neither says
anything automatic about the long-run presumption that we are at "max
production." (Does "max production" include Cuba's oil fields? or no?)
-- 
Jim Devine /  "Nobody told me there'd be days like these / Strange
days indeed -- most peculiar, mama." -- JL.
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