Without ongoing investment to support present production levels, production decline rates will accelerate ... Price Volatility
Vail - This article suggests that oil price volatility will continually increase. At the same time, I generally criticize other theories that argue for perpetual increase (in population, GDP, resource consumption, etc.). Clearly, at some point volatility must either (1) slow or decrease, or (2) reach a functional maximum at which point market signals are reduced to meaningless “trading noise” and the market function ceases to provide utility. Which result, and why? In the spirit of Kurzweil or Moore’s Law, does this process lead inevitably to the end of markets? Half in jest, what if the causal mechanism of the Maya 2012 hypothesis (or insert your favorite apocalypse meme here) is simply global markets grinding to a halt as prices cease to carry meaning and we can’t find a way to reverse the complexification that caused this?
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