Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
The resource pyramid: The pyramid charts the economic feasibility of an area’s petroleum reserves. It shows a small volume of prime resource at top and, at bottom, larger volumes of lower quality resources that are more expensive to extract. The amount and nature of occurrence of oil and gas near the base of the pyramid is not well understood. Assessments slice through the pyramid, defining only resources that have economic potential within the foreseeable future. USGS image.
And M. Simmons in:
THE WORLD’S GIANT OILFIELDS
*How Many Exist?
*How Much Do they Produce?
*How Fast Are They Declining?
by
Matthew R. Simmons
Posted: Sun Nov 25, 2007 11:52 pm Post subject: Re: "Oil Barrel Pyramid Model" by M_B_S : Peak 20
Why does it have to be a pyramid? It could be a tetrahedron or some other cube-like geometry.
In other words, I think this is just a sampling exercise in creating ratios between the different land masses. This has been verified at TheOilDrum.com by at least one person.
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