[ExI] Whatever happened to peak oil by 2020?

[John Clark]

On Tue, Jan 12, 2016 at 10:28 PM, Stathis Papaioannou <stathisp at gmail.com>
wrote:

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> A large part of it is that Saudi, and other OPEC countries, have not
> agreed to reduce production and support the price.
>

​Just a few years ago OPEC had the power to set the price of oil at just
about any place they wanted, but recently other producers have come on line
in a big way (thanks largely to fracking) and they no longer have that
power. In the past they could reduce production and still make just as much
money because the price per barrel would shoot up, but that won't work
today because now 60% of the world's oil is pumped from non-OPEC wells. So
OPEC is hurting and if they reduced production they'd make even less money
and that would increase domestic discontent and instability and encourage
other producers to drill even more wells.

 John K Clark







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