(Meanderings of a Virtual Irregular)
(The Automatic Earth)
(The Oil Drum)
Cheap energy ia an essential component of a powerful global economy. As cheap energy disappears, the overall strength of the global economy declines, which makes the demand for energy decline, which makes more expensive (lower EROI) deposits less profitable to develop, which further slows the overall economy, etc.etc. Projections of $1000 barrel oil (in 2009 dollars) bypass this aspect of the global economy. The global market for $1000 oil is so small that it is unlikely companies will want to develop reserves that cost e.g $950 a barrel.