News for hackers. Stuff that matters.

A comment on Peak Oil Perspective. Parent comment

Re:Peak Oil Perspective by randomdata on Monday September 09, 2013 @04:20PM (#6355890)
Where I would say that peak oil is about exactly the points you raised, and has nothing to do with running out of oil. The "peak" refers to the point where oil becomes so expensive that demand wanes and production starts to decline.
[ Parent | on HN ]
Re:Peak Oil Perspective by rayiner on Monday September 09, 2013 @04:24PM (#6355932)
"Peak" in peak oil, at least as I understand it, refers to "peak rate of extraction." Or at least that's what Wikipedia says.

Re: "peak price" -- the punchline is that demand is almost inelastic!

[ Parent | on HN ]
Re:Peak Oil Perspective by randomdata on Tuesday September 10, 2013 @06:24AM (#6359165)
They are one in the same, really. The rate of extraction is driven by demand, which directly equates to price (supply and demand). As oil becomes harder to find, it becomes more expensive, but extraction rates can continue upward until the very last drop if people are willing to pay the price.
[ Parent | on HN ]
Re:Peak Oil Perspective by mark-r on Monday September 09, 2013 @07:05PM (#6356884)
Unfortunately it's not inelastic, we saw this in 2008. As prices go up the economy tanks, as the economy goes down demand goes down.
[ Parent | on HN ]