[668 - Neighbor of the Beast]

It’s a fallacy. He is connecting the price of untapped oil with that of “its current price.” (”Considering how much untapped oil is known to exist...one would think that its current price was some kind of anomaly and it is.”)

Moreover, he refers to “untapped oil” and “its current price,” when in fact he is NOT talking about the current price of untapped oil.

[JasonC]

Economics was founded by the empirical observation that long run prices are dictated by replacement costs.

You are the one peddling ignorance here.

[monday]

“Moreover, he refers to “untapped oil” and “its current price,” when in fact he is NOT talking about the current price of untapped oil.”

What he is referring to is the cost of extracting untapped oil, which under any circumstances is certainly cheaper than the current price of oil. It may be an “Inconvenient Truth” for you but shale oil and oil sands alone would provide virtually unlimited amounts of usable gasoline even if oil were to drop to $40 per barrel. Sadly for the Chicken Little's of the world we are not running out of oil. This, like other economic crises of the last one hundred years is caused solely by politicians, not speculators, not “big oil” and not by the commodities markets.