The Peak Oil argument refuses to die. Today it has morphed into the Peak Conventional Oil argument. There are parts of the argument I agree with such as any finite resource will eventually run out, either due to regulation or over production, however, this is not what is happening right now. Humans are pessimistic for anthropological reasons. Life has been hard. Pessimism is even believed to be genetic , however, explaining the current woes of the oil industry by using the Peak Oil argument fails Occam’s Razor. There is a simpler explanation found in economics 101, the adjustment of an oligopoly dominated market to a free market. Econ 101 In a free market the quantity produced would be Qc and price Pc and in an oligopoly the price would be Po and quantity Qo. If the price is managed the perfect amount above the marginal cost curve […]