Quote: Originally Posted by Walter
Current known reserves will last a few hundred years at current consumption rates. Inflation is a nasty thing.
While that almost sounds promising, in reality what we need to look at is Hubbert Peak Theory, isn't it?
I mean is there is a barrel of oil kicking around in a hundred years then there is a way to say that oil reserves have lasted on ehundred years right. But if the price of that barrel of oil is so high no one could afford it then, it's not really important anymore.
Back to the economics lesson.
Supply and demand set the price that the market will bear. So if supply peaks and then begins to go into reduction, the price will rise. While Oil reserves may last for 100 years, oil production will peak within the next 15 to 20 years, meaning that no matter what we will not be able to keep up to the demand for oil at these prices. Eventually at any price.