The Freakonomics Blog continues to dissect the Peak Oil arguments:
John Tierney wrote a great New York Times column in response
to the Maass article on Peak Oil in the Sunday NY Times Magazine
that I criticized. Tierney and Matthew Simmons, who is the point man for the Peak Oil team, made a $10,000 bet as to whether in 2010 oil would be above or below $200 a barrel (adjusted for inflation to be in 2005 dollars). The bet was designed in the spirit of the famous bet between Julian Simon and Paul Ehrlich, which the economist Simon won when the five commodities Ehrlich said would rise in price, actually fell substantially.
I made an similar bet with a guy at work, though on a smaller scale. After some studying of the Peak Oil arguments, I am convinced that this whole “we’re running out of oil” argument is just another example of an irrational panic meme that will end in tons of even cheaper energy.