Oil supply rate/demand price curve

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Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Oil supply rate/demand price curve

 

I'm still digesting the text of the article and comments, but I saw various forms of this interesting curve of oil prices versus production here: http://www.theoildrum.com/node/4846

Another exponential curve!

 

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Oil supply rate/demand price curve

This article today at The Oil Drum gets at the post I made last year, above.

http://anz.theoildrum.com/node/5110#more 

Quote:  "Considering the fundamental nature of oil supply and demand provides a coherent explanation not just for the rapid rise in oil prices, but also the dramatic fall."

 

noodlydoo's picture
noodlydoo
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Joined: Feb 4 2009
Posts: 13
Re: Oil supply rate/demand price curve

Not to throw a wrench into the theory, but according to peeps at   http://www.financialsense.com/ , they showed a very compelling video (which was posted) not but 3 weeks ago that argued using available data that demand, for intensive purposes, actually has NOT suffered. It is there contention, that its mostly media myth not based in fact.  However, they also argue the point that a storm is brewing b/c of lack of investment in rigs, infrastracture, exploration etc and claim that an energy shock is somewhere in our future.

 

Thanks,

Noodlydoo

metalmongrel's picture
metalmongrel
Status: Bronze Member (Offline)
Joined: Oct 7 2008
Posts: 38
Re: Oil supply rate/demand price curve

This is one of a few economic situations that I'm confused about.  I'm starting to see alot of folks on and off this site calling for oil prices to skyrocket again soon.  I simply don't understand how this can happen when demand is still way off highs and most of the OPEC countries cannot (or will not) agree to cut production.  Industrial plastics, cleaners, and other products whose production require oil are way off highs, car sales are way off highs, and transportation is way off highs (less people flying, driving to work because of lost jobs, etc).  Where is this sudden oil demand or loss of supply going to come from that will cause prices to skyrocket once again? 

I agree with Chris in that we probably don't have the oil resources necessary to stage another 20 year boom and population expansion, but as long as we're in a recession, I don't understand how oil prices will skyrocket. 

 

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1444
Re: Oil supply rate/demand price curve

Metal,

One thing to remember is that the oil run up of the last couple years was a manipulated event to bring the Middle East Countries back down to earth.  It gave them a false sense of security and made them used to spending at a much higher rate than previous years.  Just when they got rolling with expansion of their individual civilizations tptb pulled the rug out from under them.  Same for Russia.  A reporter that follows the Bilderberg Group and has been able to infiltrate it in a small manner stated before the run up that this would occur and that they planned exactly what I just described.  Needless to say, he was right.  I think you can see a bit of this in the movie "Obama Deception" if I'm not mistaken. 

As for why prices will increase soon.  IMO tptb will manipulate the prices upwards to increase the pain on the economy/common man.  This will help to bring about a reason for One World Order that they can sell to the masses.  I know, conspiracy theory.....Reality is more like it.

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