Got Gas? U.S. Economy to Worsen as Gas Prices Skyrocket

[OverVolt]

*points at the thread and laughs*

HAHAAAHHAHAHHAAAAAH......*catches breath*......
HAHAHAHAAHHHAAAHHHH!!!!!!!!!!!!

I said $5/gal in 2018 we'll see.

 

[desy]

Yes but there are over 16,000 Bakken wells so it adds up, hence the price needs to be high otherwise these wells aren't profitable to drill.

Goes to the point of the marginal cost being a major the price driver when we are at max production. If the price is too high destroys demand, price falls, marginal oil quits being produced but cause its cheaper again demand goes up upward pressure on price, more production is brought on line meets demand, refinery fire, hurricane, war somewhere, drives price above what people can pay because we are at the peak, kills the economy kills demand, marginal production is halted. . . . .

This is the bumpy peak oil theory, where while flirting the peak of production pricing is widely influenced creating pendulous price/supply/demand swings.
Maybe we do find reasonable substitutes to break the cycle and leave oil for medicine and plastics and all the other products instead of how we use it now
Hope so, I have kids