Just a quick note here based on some information I have been hearing about shale oil. If you recall, I wrote a primer on peak oil a week or so ago. The crux of that post was that it is not a question of our running out of oil but rather of our running out of cheap oil. And that has economic implications since we are at a point where oil prices are high enough that people begin to cut back on consumption, so-called demand destruction.
Some anecdotal evidence suggests that the nonconventional oil we are seeing pop up is more expensive to extract. An example is the Bakken shale oil fields in North Dakota. Hess Corp has warned that its oil production output from the Bakken fields would fall short of its 2012 target.
“While we expect the monthly average to continue to increase throug...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.