"price increase incentives do not bring more oil" OMG... Free market doesn't work we need to regulate it even more!!! :)
Crude oil production is at decent level, more will drive prices down. But no real reason to produce more: this is well controlled market - OPEC and Russia and USA are responsibly for regulating that market.
Taxation and regulation makes oil industry incentives less obvious. Also for increase of crude oil production more investments needed and risk is huge.
ME (year later): shit's expensive. This is not fair! I have to make sure workers are safe? They need breaks? OSAH *gurgles* drowning in regulation. Yeah I make towers of money, what, Tax? Oh uh uh! I DESERVE it all.
ME (14 years later): finally bought me a Congress, shits expensive!
ME (35 years later): fuuuuuuuuuuck I'm riiiiiiiiiiich!
"price increase incentives do not bring more oil" OMG
Actually, free market economics do predict exactly this happening when the supply proves finite and dwindling. It's happened before, in whale oil, for example.
Your focus on oil production is interesting. Would you care to add an additional statistic on total energy production/consumption? Also, I am interested in the impact of energy efficiency on economic development. Improvements in data technology could significantly impact economic development by reducing the amount of energy required to transport people to work sites. How does that factor into this whole picture?
"Energy production/consumption" is too vague. Are you talking about electricity (which is largely coal), natural gas (heat, electricity, shale/tar sand oil enabler), food, caffeine? If you want to dig into a complex, tightly coupled system, society's energy profile is just the ticket for demonstrating the limits of theory.
So, a leveling out in oil production may not actually indicate anything of significance after all. One of the problems with traditional economic metrics is that they often fail to recognize shifts in restructuring until after the fact. What shows up as a downturn could be a change in basic patterns of economic activity rather than an economic decline.
Nope. Leveling is preventing an increase in traditional economic activity, which is in turn required for a "healthy" economy. The "change in basic patterns of economic activity" you mention will translate to "an economic decline" under the current paradigm.
Until folks start breaking out of that paradigm, decline is in our future. Even then, decline is inevitable.
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Crude oil production is at decent level, more will drive prices down.
But no real reason to produce more:
this is well controlled market - OPEC and Russia and USA are responsibly for regulating that market.
Taxation and regulation makes oil industry incentives less obvious.
Also for increase of crude oil production more investments needed and risk is huge.
Reply
ME (year later): shit's expensive. This is not fair! I have to make sure workers are safe? They need breaks? OSAH *gurgles* drowning in regulation. Yeah I make towers of money, what, Tax? Oh uh uh! I DESERVE it all.
ME (14 years later): finally bought me a Congress, shits expensive!
ME (35 years later): fuuuuuuuuuuck I'm riiiiiiiiiiich!
The end.
And your comment is a fairy tale too.
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Actually, free market economics do predict exactly this happening when the supply proves finite and dwindling. It's happened before, in whale oil, for example.
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Until folks start breaking out of that paradigm, decline is in our future. Even then, decline is inevitable.
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http://www.slate.com/articles/health_and_science/science/2012/10/correlation_does_not_imply_causation_how_the_internet_fell_in_love_with_a_stats_class_clich_.html
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