Quote:
quote:Originally posted by lanenz
We are starting to go through the same phase as what happened during the 70's ealry 80's. As price of oil goes up then other commodities become more attractive. In my oinion it wont matter if the world runs out of oil because other resources would have taken over
Yes the final determinant of price will be the cost of substitution from a variety of other oil sources such as the oil sands of Canada, deep sea oil, or substitution with biofuels, hydrogen etc. Once tooled up the cost of these substitutes may well be less than the present price of oil. We always tend to overdoo things and so the price is bound to have a medium term reduction but the long term cost of energy is bound to rise as more and more of the world wants a slice of the first world life style.