Never Mind The Growing Gap Between Oil Production And Consumption, Here's The SLS Black Series

Edward Niedermeyer
by Edward Niedermeyer

Last Monday, we regaled you out with stories of Toyota coming to grips with the “new peak oil,” and other topics related to the growing gap ( or lack thereof?) between global production and consumption oil. This week I’m feeling a little less apocalyptic, and little bit more indulgent. And really, why not celebrate those precious hydrocarbons while they’re still cheap and plentiful? This Mercedes SLS AMG Black Series may burn ’em by the bushel, but it sure sounds good doing it. And though cars like the forthcoming 650 HP Shelby Mustang GT500 prove that performance is still alive in the 21st Century, high-revving, large-displacement, naturally-aspirated V8s like the AMG Black’s are going to be facing special challenges under future emissions standards. Which makes its gargling, chortling music all the sweeter to my ears…


Edward Niedermeyer
Edward Niedermeyer

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  • Jake Jake on Nov 21, 2011

    Ed...not quite "regaled" with your...uhh..."prolific" analysis of petroleum markets lately...even less your fundamentals of Economics. a) Global market price of oil is almost always in equilibrium (given a rational expectations model of market behavior); and equilibrium price resolves any "real" gap between supply and demand in short order. (...unless you presuppose a significant lack of information in oil markets) b) We will never...ever...ever...run out of oil. You know this. Price will simply increase to a prohibitive level (in the short term) as aggregate supply declines, or aggregate demand increases, or both. c) "b" doesn't even consider that the most wealthy companies on the planet (nationalized oil companies), WILL ALWAYS take advantage of sustained increased market prices of oil, and will innovate ways to bring more supply to market for you and me. (US companies will be prohibited from such innovation in the name of environmentalism, but that's "aggregately" insignificant to oil markets) d) Does the "Missile Gap" (a la Cold War) seem eerily pertinent to the fear-mongering of this "Oil Gap" hyperbole? Regardless...let's get back to (what you do best) a gear-head discussion of all things automobile; and ditch the fact-deprived Oil-gap bugaboos. Panther Lurv hearts TTAC

  • Moawdtsi Moawdtsi on Nov 21, 2011

    She's the last of the V8's, sucks nitro, phase 4 head, twin overhead cam, 600 horsepower through the wheels with the blower, He's in coma, man!, HE LOVES IT !!!

  • Thx_zetec Thx_zetec on Nov 21, 2011

    Ed Regarding this "oil consumption exceeding production" kick in this and recent articles: Basic economics says this can't happen. Ignoring storage (which is fairly small vs annual consumption) consumption has to equal production. Call this "conservation of oil". In free market there is never a "shortage". Consumption = production but price can go up or down. So I will go out on a limb here and predict that for the next hundred years production = consumption. I won't be able to tell you how much it costs or how much there will be though. Put another way: gas stations will sell you as much gas as you want - if you pay market price. There might be temporary shortages, mostly caused by stations not being allow to raise prices fast enough to balance supply and demand.

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    • Zykotec Zykotec on Nov 22, 2011

      @stuki Actually, because economy is now decided by stock brokers logics doesn't apply. We can no longer say that 2+2 equals 4 if someone is willing to pay only 1 for the 2. Then the value of 2 is one, and 2+2 suddenly equals 2. then someone found out they can gamble on what the number 2 is worth tomorrow,an run off with the two 1's that the other guys lost, not to mntion the goverment had to make two more 1's to replace the ones lost, we end up with the situation we're in now, where 4+4 again equals 4, and the holding companies have a 2+2 that equals 8. The worst part is that the stock marked now is a lot purer and fairer than it was in 1929, then you suddenly understand why depression....

  • Manbridge Manbridge on Nov 23, 2011

    So TTAC is leaving those provocative, political, subjects at the margin? Is this really Ed, or is it Paul? All kidding aside, I think peak oil was reached in 2000. All vehicles on the road are now powered by conspiracy theories. Jimma Carter could not have possibly been wrong. Do not doubt me. And when will TTAC give equal time to that chap from Pepperdine University(?) who claims that oil is being produced by extreme pressures and not necessarily carbon? Vive le ICE!

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