The Peak Oil Crisis: Speculation, Subsidies & Megacities

The energy issue of the week is whether high gasoline prices are being caused by supply no longer being able to keep with demand or by speculators garnering untoward riches at the expense of hardworking motorists.

The facts, economic theory, and the most knowledgeable observers such as the U.S. Secretary of Energy are telling us that the problem is one of supply and demand. Speculators, however, make an irresistible scapegoat that few politicians can ignore. They are nameless, faceless (probably foreign) individuals that can be bashed with impunity without the slightest hint of political incorrectness.


Blaming speculators is now worldwide. OPEC officials routinely mention the role played by speculators as the chief cause of high oil prices. German leaders have proposed a worldwide ban on oil trading by speculators. The transport chief for Germany