But this is exactly what the consuming nations such as the U.S., the European nations, and Japan are asking of countries that produce oil, such as the OPEC nations and Russia. They are saying, “Produce more to make us more profitable and yourselves less profitable.” It is not going to wash.
Nevertheless, what this means is that the idea of “peak oil” is not just one of geology. Rather it is symptomatic of a fiscal culture, both in business and geo-politics, that profits from low margins and tightness of supply and demand. If you flood a market with product X you will see margins fall. If you keep supply demand tight you will see margins increase, even if costs have to rise.
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