prices and the substitution effect
I apologize if I drew the wrong inference about any prejudice towards distillates. I agree with you that production may not increase in the face of higher prices. Production can and will be constrained by physical, technological or political constraints. I also agree with you that low prices do not indicate a glut but rather a lack of effective demand in the face of a given supply. That does not sully the fact that higher prices surely will force consumers and producers to seek substitutions. This is why some don't see a problem with peak oil, or peak stone, or peak wood, or peak coal or peak anything else.
