I may be comparing apples to oranges but one reason to NOT overproduce is that prices are set at the margin, and overproduction will lead to a price crash, which tends not to be an issue for legacy wells, but for newer technologies (e.g. tar sands) it's economic devastation.
I think you may refer to the catch-22 that Gail Tverberg speaks about often. My posts explore the idea that you need increasing GDP to pay debt, and it appears true to me that you need an increasing amount of energy to increase GDP. The only thing that Fracking did, in the big picture, was help blow the biggest bubble ever which has now popped.
I may be comparing apples to oranges but one reason to NOT overproduce is that prices are set at the margin, and overproduction will lead to a price crash, which tends not to be an issue for legacy wells, but for newer technologies (e.g. tar sands) it's economic devastation.
The markets like price stability.
I think you may refer to the catch-22 that Gail Tverberg speaks about often. My posts explore the idea that you need increasing GDP to pay debt, and it appears true to me that you need an increasing amount of energy to increase GDP. The only thing that Fracking did, in the big picture, was help blow the biggest bubble ever which has now popped.
How will you be when the music stops?