Peter Tertzakian: World's Oil Supply On The Brink Of Being Permanently Damaged At These Prices

The price for a barrel of oil is dancing in and out of the $20 range, the first time since 2003. And the analyst chatter is reveling in its bearish tone, skeptical of any meaningful recovery anytime soon, even after today's half-hearted OPEC announcement. "I think it's a competition to see which pundit can justify a lower price for longer," mused a friend of mine.

"I agree," I said nodding with a wry smile, "the one-upmanship – or one-downmanship – reminds me of bad reality TV. But the consequences of all this spreadsheet jockeying go far beyond counting barrels and price forecasts."

"You mean the upshot of one of the world's largest industries being gradually dragged into bankruptcy?"

I nodded again, "Yeah that's one part of it. You don't need a spreadsheet to figure out where this is headed."…

How about peak oil?

Source: Association for the Study of Peak Oil and Gas (ASPO) via Wikimedia Commons