mpkirby

Is Oil a Bubble? Part One

For those of you promoting "peak oil" as justification for sustained high prices, don't forget that while the oil market is inelastic (explaining the sustained price right now), it isn't totally rigid.

Peak oil is about production curves, not price. It is totally reasonable to go through peak oil with very high prices, followed by crashes, followed by a resumption of high prices.

Peak oil says nothing about price. It only speaks to production.

Mike