[. . .]
We use oil because it is by far the cheapest and most convenient form of stored energy many times over... and production is peaking while consumption climbs. The consensus among those in the Petrology Community is that global oil production will peak within five years or so, maybe less, while world oil consumption, fueled largely by the insatiable US addiction and the burgeoning economies in Asia-India, continues to grow steadily. Production Vs consumption. Those lines will cross next year. What happens then?
What happens then is that the price of oil begins a sustained long term move to record levels, and where it will stop nobody knows. The surge in oil prices seen in the middle of this year was the first leg of that.
[. . .]
And think about this. How many nations would see the interruption of the flow of oil (or exorbitantly high prices) as a threat to national security? China? India? The oil, or the lack of it, could be the spark that ignites what has the potential to turn into a nasty, global conflict.