Re: [Pen-l] Re: Peak oil

[raghu <mraghu01@xxxxxxxxx>]

On Thu, May 1, 2008 at 9:09 AM, Julio Huato <juliohuato@xxxxxxxxx> wrote:
>  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.


But surely they care about the fixed cost of the investment required
to increase production. This cost does come out of *present* profits,
and it may only make sense if there is a high probability of future
profits.
-raghu.
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