Peak oil does not mean running out of oil, what it means is that it doesn’t make economic sense to get it out of the ground, and that is exactly what happened. Look at this rig count chart. Currrent oil rigs in production is 428
Earlier this week we noted a couple of factors that do not favor a higher crude price for any length of time. First, China has apparently slowed or stopped purchasing crude for its strategic reserve. Worse, if the price of crude rises much, the Chinese may decide to re-export some of the oil they bought cheaply over the past couple of years.
Second, Bloomberg reported last week that there are 10 tankers loaded with North Sea crude that have not found buyers. The futures market has returned to contango, meaning that current spot prices for crude are lower than futures prices. A forward curve in contango indicates an oversupplied market where prompt cargoes sell at lower prices than those for later delivery.
So, what the frackers are in is called a catch 22. If the prices stay low, they go bankrupt. If the prices come back up, they start reactivating rigs, and suddenly there’s oversupply, sending the prices of oil back down. This is called PEAK OIL folks.
Shortly before Micheal Ruppert was “sucided”, he was speaking about Peak Oil, and the problem of infinite growth.
If you don’t know who Michael Ruppert is.