Originally Posted by
RockyBoy
Not necessariy the real case. If we can keep speculators out of the oil market, then the price shouldn't increase at more than 3-5% annually. Eventually oil will be $200/bbl because it is a finite resource, but we have enough to support worldwide demand and growth for the next 15-20 years at a price below $90/bbl if speculators will stay out of the mix.
I don't know if we've reached peak oil yet, but when we do the price increase not be linear with increasing demand...it will ramp up spectacularly, possibly over a period of months, until it reaches a point where some consumers (third world) simply cannot afford it.
We will pay $10/gallon and poor people will be riding bicycles again.
I think 2008 was speculation, but it was a good dry-run for when we really start to run out.