"But before that happens there will come a day when oil production ‘peaks,’ when demand overtakes supply (and never looks back)"
That is the first error - in the description. Peak oil has nothing to do with consumption. Peak oil is the rate at which it is produced, we assume it will be consumed. Whether it is or isn't is irrelevant, except in the extreme where the demand dropped so far as to drive the price down and force a lot of wells to be uneconomic, and thus the rate drops.
As usual the political aspects (which are important) seem to get confused with the technical aspects of finding and producing the oil. They are related, but not as causual as most people think.
For many years in the US we have been on a cycle to become gas producers. Oil became passe. Now the price of oil is significantly factored higher than gas. Traditionally it was around 6:1 now 13:1 or more. The costs of doing business is based on $80 oil (rig rates etc) but your product (gas) is not competing on the revenue side. We are starting to see a return to oil.
Movies of this type don't usually have as much a political agenda as showing a clueless grasp of the technical and marketing aspects of the business.
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Originally Posted by Botnst
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