Comment 27992

By jason (registered) | Posted December 25, 2008 at 22:25:43

mark2 - I think the surging price of last year was related to surging demand vs. supply. Perhaps demand didn't exceed supply, but the oil companies saw that their margins were smaller than they've ever been. Quite likely, the price spike was the only reason that demand didn't exceed supply.

ASmith - private companies have done a good amount of their spending in recent decades closing up shop in N.America in order to move overseas and operate sweat-shops. I'm not sure what 'more efficient' way you're thinking they could spend money? They've made it clear that whenever they can, they'll use excess capital or government bailouts (which we've been doing for many years, not just recently when it's finally made it into the mainstream media jargon) to close N.American plants.
Government spending needs to be doled out with strict regulations on how it's spent. I'm tired of paying tax dollars to these guys so they can put another 600 people out of work.

Ted - I'm working on a rare piece about this whole peak oil thing, and my working title is 'Forget Peak Oil, it's Peak Economy'. I think you're right - the economy will simply settle into this bump and grind with recession for the long term, especially in countries like ours and the US who refuse to break the addiction and continue to allow oil companies to constantly form governments and wield power.

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