There never was « peak oil ».
(answersingenesis.org)
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (6)
sorted by:
I think people not in the commodity space are just misunderstanding the term "peak oil".
It is simply a term describing a part of the commodity cycle.
High oil prices lead to more capex on exploration.
As more wells get discovered and come into production, oil prices fall to a low level due to oversupply.
Low oil prices causes less profitable oil companies/oilfields to go bankrupt/shut down and supplies start drying up as existing wells get depleted. This is what the term "peak oil" production is referring to.
As supplies dry up, we reach the "peak" of oil production until prices get high enough to incentivize companies to start investing more in oil exploration for profits, and from here on, the cycle repeats itself.