How people value oil?

Answer 1

The peak Oil theory, if you haven't already encountered it, suggests that oil production will follow a bell curve. Production will rise to a peak, and then begin declining due to the fact that as oil reserves get lower, it becomes more expensive to retrieve. It ends up at a point where you have to put mre energy into sucking up and refining the oil than you get out of using it. The theory is that once the peak is passed, the decline in production will be as sharp as the rise toward the peak was.

It's a theory backed by the vast majority of scientists and energy economists, such as the international Energy Agency. And according to the theory, we're very close at the peak point right now, if it hasn't already passed.

by David Gay Ho