Daily Archives: April 21, 2013

I Can’t Afford to Live Here

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The last time I remember the real estate market in my area being so frenetic wasn’t in 2007, at the peak of the housing bubble, but more like 1999, as the Internet bubble was still swelling. There was a lack of housing supply, and realtors would be pestering homeowners constantly about whether or not they wanted to sell their house. Some shrewd ones took the offer and got out (one friend of mine accepted the obscene amount paid for his house and went to Southern California to start a winery). (more…)

Peak Oil: This Saudi Doesn’t Understand Either

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Peak Oil will always be a controversial theory… always.

But it’s a reality.

What’s maddening is explaining it over and over again to people that don’t get it.

For example, as Dr. Sami Al-Nuaim reported in the Saudi Gazette:

In the last few years, there were several attempts from several non-specialized writers in the Saudi media to advocate for what is called “Peak Oil Theory” that wrongly predicts dark future for oil production. 

This theory was introduced in the US after the oil embargo in early 70s by some bankers stating that when 1/2 of the oil reserves in any field is produced, the production will follow steep decline. This concept is based on a probability theory that is not linked to any scientific facts or physical laws that govern oil production in oil reservoirs. 

In addition, what makes this theory completely false is the fact that it totally ignores the impact of technological advancements in increasing the recovery factor and the probability to find new oil discoveries. (more…)