The bubble will not burst. Oil reserves are essentially a determined finite resource.
Yes, it is true that exploration continues,but easily accessible oil is rarely found and the adddition to reserves is miniscule.
Where there is oil being discovered and added to reserves is somewhat limited in it’s impact as the oil found is either expensive to obtain (Alberta, CA), or is politically infeasible (ANWAR), or is impractical to obtain due to technology not being currently available (Pacific Basin).
Given those facts and that developing nations such as China and India are continually increasing their consumption, the price of oil is likely to increase until the day it runs out.
Like it or not the only technological and currently viable options for the world’s enery needs (next 25 to 50 years) is either coal fired or nuclear power plants.
Before one jumps onto the so-called ‘Alternative’ fuels bandwagon one needs to try and understand the laws of thermodynamics and the relationship of energy and matter.
Not to mention that ethanol is now being recognized as a significant contributor to world hunger (no corn meal to feed people) and that hydrogen comes from three primary sources - oil refineries, SMR’s (Steam Methane Reformers) and Electrolysis - regardless of the source it is taking more energy to make a fuel (efficiencies) that is more costly than oil, coal or nuclear energy production.
Rather than turn this into a dissertation on enrgy, suffice it to say that if you are waiting for the price of oil to go down - don’t hold your breath.
I don't believe that is a true statement. Reserves on average grow faster than the worlds growing demand.
In 1980 those estimates said we had 27 years left.
In 1990 those estimates said we had 41 years left.
In 2000 those estimates said we had 36 years left.
In 2005 those estimates said we had 41 years left.
In 2007 those estimates said we had 43 years left.
On average, the petroleum industry meets the rising demand and still adds more to the proved reserves.
http://www.eia.doe.gov/pub/international/iealf/crudeoilreserves.xls
http://www.eia.doe.gov/emeu/ipsr/t44.xls
-—or is politically infeasible (ANWAR), or is impractical to obtain due to technology not being currently available (Pacific Basin).——
Those are not (yet) counted in the reserves. Proved reserves are only fields that have been drilled and wells flow tested. ANWR and the like are in addition to the world's proved reserves.
-—Rather than turn this into a dissertation on enrgy, suffice it to say that if you are waiting for the price of oil to go down - don’t hold your breath.-—
If you believe the boom and bust cycle of the oil industry has ended forever, I believe you are mistaken.