What you say will not affect my point.  Plot the level extraction over time, 
even if
1/4 of a gallon is left untouched.  There will necessarily be some peak point in
time.  Admittedly, if the peak is less than 1/4 gallon, it is possible that one
final rush of extraction of the last remaining 1/4 gallon in a single period 
could
create a new future peak, but in any case, a peak is a certainty (although 2 or 
more
periods) could be in a tie as peak periods).

On Sat, Sep 08, 2007 at 03:18:01PM -0700, Jim Devine wrote:
> On 9/8/07, Michael Perelman <[EMAIL PROTECTED]> wrote:
> > Assume, for the sake of argument that you know the total quantity available 
> > -- let's
> > say it's a gallon.  Each period you remove some until you reach some point 
> > where it
> > is uneconomical to continue.  At some point, you reach a peak.  Of course, 
> > it is
> > probable that the decline will not be monotonic, but the peak will remain 
> > the peak.
>
> what if the amount you take out gets smaller and smaller over time, as
> the price rises? that is, as it slowly becomes "uneconomical" to take
> oil out of this fixed pool, people find substitutes for oil and figure
> out how to use oil more efficiently (driving Priuses, etc.) With
> increases in efficiency, the pool of oil may be constant or shrink,
> but the effective benefit received can increase.
>
> the issue about the meaning of inevitability is crucial. Sure, the
> collapse of capitalism is "inevitable," since the system is
> anti-human. It will kill either itself or humanity. If the latter
> goes, so does capitalism. QED.
>
> However, there are _counteracting forces_ which should always be
> remembered. Abstract tendencies can be expressed very differently in
> practice.
> --
> Jim Devine / "We are what we repeatedly do. Excellence, then, is not
> an act, but a habit." -- Aristotle.

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com

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