This argument breaks down because refining capacity is still increasing. Growth in global refining capacity in 2005 was an extremely healthy 2.8%, as reported by Jim Fraser at the outstanding Energy Blog:
EIA just published its annual World Crude Oil Distillation Capacity tabulation which gives a country by country breakdown of distillation capacity as of January 1, 2006. Distillation capacity jumped up 2.8% in the last year, to 85,127 thousand barrels a day, the highest increase since 1978 and the first time it exceeded 1.0% since 2000. Demand for oil for the first three quarters of 2005 (latest figures available) was up 1.16% over last year, so refinery capacity is up well ahead of demand.China showed the largest growth, with capacity expanding by about 1.6mbd.
-- by JD
Great peak oil quote of the week: "If you or Ruppert or any other serious individual on the alternative side of this world can tell me with a straight face that this entire peak oil thing isnt a pile of complete and utter money making bullshit, since we dont even need the stuff, then I'm Pope Gregory the Ninth."
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