The Export Land Model

[FatherDunlap]

http://www.moneyweek.com/file/48644/who ... -taps.html

This article does a pretty good job of explaining what's known as the export land model:

To understand the importance of exports when discussing peak oil, ask yourself the question: “What’s more important: the fact that global oil production is falling… or that the oil exporting nations are cutting off their exports?”

While the two questions are clearly linked, it is the nuance of the export question that clearly matters the most. Especially if you live in a country such as the US, which currently imports about 70% of its oil.

So it really doesn't matter to us if OPEC is lying about their inability to increase exports, because we have no control of that, short of establishing a permanent military presence in the Middle East. Oh wait, we're already doing that:

http://www.msnbc.msn.com/id/12319798/