Peak Oil

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ralfy
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Joined: 21-03-13
Oct 2 2017 12:55
ocelot wrote:
I see Peak Oil's really kicking in at the moment...

FT: Brent oil falls below $54 for first time in five years (paywalled)

Quote:
[...]
Opec has been battling a demand squeeze amid “anaemic global growth”, a drive by governments to meet emissions targets and an “upsurge in competing supply”, said David Hufton, chief executive at broker PVM. A stronger dollar has not helped either.
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“[It] is very plain for all to see that oil supply growth exceeds oil demand growth and from a producer point of view this imbalance has to be rectified,” he added.
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Even as recent conflict in Libya has reduced output, Russian production has reached record levels and Iraqi exports have hit highs last seen in 1980, only adding to concerns about an oversupply.
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“New supply has entered the market, offsetting Libya outages,” said Adam Longson, oil analyst at Morgan Stanley, adding that there was little to support the oil price.

Peak oil doesn't refer to price but to production cost, both in terms of money and energy.

That's why while prices dropped production costs continued to rise (now at $50 to $90 a barrel). Because of this, the industry has had to renegotiate debts, lay off thousands of workers, and burn through its cash flows to stay afloat.

In the end, more will realize that peak oil is based on physics and not economics.

https://www.bloomberg.com/news/articles/2016-08-29/oil-discoveries-at-a-70-year-low-signal-a-supply-shortfall-ahead