By on November 21, 2011

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…

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11 Comments on “Never Mind The Growing Gap Between Oil Production And Consumption, Here’s The SLS Black Series...”


  • avatar
    imag

    An incredible sound indeed.

    But the Merc still has to bow down before the DBS (jump to 0:40): http://www.youtube.com/watch?v=KhVvglkBAhI

    I am pretty sure we are going to remember this era fondly, when it comes to cars….

  • avatar
    PantherLurv

    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

  • avatar
    moawdtsi

    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 !!!

  • avatar
    thx_zetec

    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.

    • 0 avatar
      stuki

      What’s wrong with you, man! Stop making so much sense. After all, we live in the age of silly slogans; the age of reason was over a long time ago. And besides, it was horrible too, with dead white males and such scary creatures virtually everywhere.

      These days, for politically correct reasons, economics is officially repealed, replaced by various quasi religious and incoherent versions of “macro-economics.” Supply does no longer equal demand, since it is much more convenient for our great, benevolent leaders in Washington and at Goldman, to claim the whole world suffers from a lack of demand. Which can only be cured by us handing over more money to the guys in Washington and at Goldman, of course. So that they can buy AMG Black cars, while we can be grateful for the public transportation they, out of loving and car, is providing for us.

      • 0 avatar
        don1967

        These days, for politically correct reasons, economics is officially repealed, replaced by various quasi religious and incoherent versions of “macro-economics.”

        Don’t forget the quasi-religious and incoherent versions of “science”, which compel us under threat of mockery and ridicule to accept that Shell Premium 93 comes from dinosaurs. Dinosaurs which waited hundreds of millions of years for our consumption, but through an astonishing coincidence are about to disappear right now if we don’t send money.

        The Power of Crichtonsaurus compels you.

      • 0 avatar
        rpn453

        Dinosaurs? There are actually groups claiming that oil comes from dinosaurs? Wacky. I haven’t visited that particular fringe of the internet. They would certainly mock and ridicule me, so I’ll stay away.

      • 0 avatar
        Zykotec

        Ehrm, I read this as an ironic twist on what crazy creationists actually think…LOL
        On a more serious note, oil isn’t only dinosaurs, it is mostly plants and threes and a whole bunch of other deceased carbonic lifeforms (of which dinosaurs are only a very small part) that has been heated and pressurized just long enough to become a smelly sticky poisonous flammable liquid which we have tried to burn and use up as fast as we possibly could, for the last 150 years or so.
        The possibility that there are more sources we haven’t found yet and that we haven’t dried out all the wells we already have found will soon be just a game of chance, in which the odds still aren’t to bad. The only problem is that the free marked tells us that the highest bidder will get whatever resources are left, and I don’t think the average commuter will be the highest bidder in the future.
        On the other hand, oil is a renewable energy source, that only takes a few million years to reproduce , or if you’re a creationist, it must be less than 6000 years.

      • 0 avatar
        Zykotec

        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….

    • 0 avatar
      don1967

      You’re killing the Peak Oilists’ fun with all this talk about “free markets”. How will they ever achieve world domination if we get the wacky notion that necessity – not social engineering – is the mother of invention?

  • avatar
    manbridge

    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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