tsb wrote:My understanding of "Peak" with any resource is that no matter
what the demand, the ability to supply will slowly or rapidly decrease.
Yes and with "peak oil" the peak does not mean there is no oil left. When they first tap a new well it's usually under enough pressure to come out by itself, as the pressure drops they have to start pumping it. As the well diminishes they have to start doing things like injecting water into it. Each of these steps requires more energy to extract it and the amount of energy needed rapidly increases, at some point you're going to hit a wall where you're expending just as much energy to extract it that you produce. The "energy expense" becomes too much, there is no sense extracting a gallon of oil if you have to use 1 gallon to get it. Some of the wells that were abandoned many decades ago are now productive again because of better tech but new tech is only going to take you so far.
In any event we will continue to extract oil even beyond peak but it won't be used for energy needs. Instead it will be for used in the petro chemical industries, etc.