Re: Krugman looks back from 2096

From: Michael S. Lorrey (
Date: Fri Jul 14 2000 - 07:54:43 MDT wrote:
> In a message dated 7/12/00 8:10:48 AM Pacific Daylight Time,
> writes:
> << Except that oil prices are not due to the actual market demand or actual
> ability
> to supply, but by restraint of supply by a monopolistic syndicate, so it is
> false evidence to use to reflect any trend in increase in cost due to third
> world development. Inflation of prices in general has on a decade by decade
> average, have always trended higher than inflation in energy prices,
> something
> which Krugman ignores. >>
> I wonder if Dr. Thomas Gold's theory (since he did the exploration in Sweden
> 10 years ago, its now a theory) about regenerating oil fields, in which oil
> percolates up from deep inside the Earth's crust will impact supply and
> demand? See last month's Wired for the interview.

It seems to be a rather slow percolation, as a wildcatter friend of mine who
ropens abandoned wells in the Texas/Louisiana area sees only a few hundred
barrels per day per well for a few years (on wells that have been capped for
30-40 years). His costs are around $10-12 per barrel, so it is profitable when
he does hit one that has a decent flow (about a 50-50 chance so far), but it is
not a high volume business, so it will never be a large percentage of the

This archive was generated by hypermail 2b29 : Mon Oct 02 2000 - 17:34:36 MDT