[Pen-l] Re: Peak oil

["Julio Huato" <juliohuato@xxxxxxxxx>]

troy cochrane wrote:

> I think that's a given.  But how will they respond?  Their response will be
> far more complex than simply increasing productive capacity. If they are
> increasing productive capacity at a faster rate with the increase in prices
> then perhaps it indicates that they feel the global production peak in
> conventional oil is nigh.  If their response is other than that - lobbying to
> prevent increased royalties, marketing overdrive to slow down growing
> consumer resentment, etc. - then they may recognize the price increase
> as a bubble tha t should be milked while it lasts.  If a bubble encourages
> excessively quick investment in production of unconventional sources
> then they'll undermine future profits when the bubble bursts.

I really don't get this distinction.  It may make sense for OPEC
members -- or even non-OPEC members where private interests are
somewhat subordinated to state policy (e.g. Russia, China, Mexico).
Other large producers (e.g. the U.S., Canada, Norway, Britain), where
private interests dominate, have no clear reason to care about
"undermining future profits."  They are not members of a co-op of oil
producers.  Actually, if they produce more, they get more profits.
For an individual capitalist, the end of the world is not "peak oil"
but going broke.
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