The Rising Influence of Rising Affluence

[mauser96]

From an investors viewpoint there is a difference between "Peak Oil" and "Peak Cheap Oil". Neither require a sharp pointed peak, a rounded or flat one is OK too, it just takes longer to start the down slope. The down slope isn't needed to make profitable investments, just a tad less supply than demand.

New oil in general is expensive to produce. I understand that even land based oil wells in the Bakken cost close to $9 million each to drill and complete. Deep water wells are even more expensive. These costly wells require expensive oil to be economic. Many areas lack infrastructure, it will be a long time before they produce and market significant amounts of oil. I am dubious about claimed reserves for new fields. There are few typical oil fields, especially not the new ones , which are made feasible by a combination of new technology and high prices. You need both to make them work.