The main purpose of this diatribe is for those who say that rising oil prices will bring about diversification, conservation, and result in less reliance on oil.
We can agree that the current economy is driven by cheap oil, or rather, cheap energy. So, with the increasing price of oil, we lose cheap energy.
What are the consequences?
Immediately, we see fewer people purchasing gasoline, and trying to get rid of extra cars, move to mass transportation, etc. This will mean fewer gas stations, fewer cars on the road, fewer new cars being purchased, and increased demand for mass transportation.
Car prices then fall, and automotive manufacturers are forced to downsize. This means lots and lots of lost jobs, not just directly for the automobile manufacturers, but any direct suppliers.
The same can be said for trucking industries, airlines, taxi companies, really anyone directly relying on oil or gasoline or transportation. Transportation become much more expensive, and fewer people can afford their services.
Fewer people working competing for a diminishing job market. Wages will decrease. Taxes will increase. Currency instability will run rampant, especially in the US, as credit card companies collapse with the inability for their customers to fulfill their debt obligations.
Banks will begin foreclosing on assets, as people no longer have jobs to pay their bills. Other people sell their assets, too, for similar reasons. Housing prices will collapse, and millions of people will lose equity in their homes. More people will be living in smaller homes, with larger homes becoming multi-tenant facilities.
With the increased transportation costs comes increased costs for goods. Food will likely double, possibly triple in cost. That means less disposable income. Services such as internet and cable TV, which have been givens as of late will become high-cost novelties that most cannot afford. Computer and TV sales will decrease. More people lose their jobs (including myself
)
By this time, most private sector investing is drying up. Any possible money used to finance much-needed research must be taken up by the government supported by an ever-dwindling tax base and an ever-increasing support structure.
Alternatives will also be unfeasible at this point. With the increased demand for alternative fuels, such as uranium, hydroelectricity, and wind/solar power, the price of energy derived from these means will increase. As the hydro dams of my home in Manitoba are ever required to support a larger burden of the power grid, energy bills will skyrocket. That means fewer dollars that could otherwise be spent to invest in alternatives, and instead spent to maintain the current system.
The end game I see is a near elimination of much of the entertainment industries, as individual disposable income is virtually eliminated in favor of grossly increased food and necessity costs, combined with lower wages. Basically, a revisited global depression. Society will revert to a more agrarian culture, just as with the depression - people growing their own food on their own soil. The problem is the population of the USA is more than twice what it was 80 years ago with fewer "unspoiled" natural resources (thanks to decades of environmental abuse).
Really, by the time prices are so high people want to conserve, it will be too late. Action must be taken immediately, to delay the onset of PO, so that viable alternatives can be evaluated and implemented before the crunch arrives. Question is, with Western culture's desire for consumption and the increasing desire for oil from China and India, will we make those changes?
*edit*
I would also like to add that the overwhelming deficit spending culture in North America, combined with already increasing demand on healthcare and social services will likely result in a bankrupt government unable to provide any services to their population, and be unable to finance alternative energy research at all, leaving everyone SOL for the future.
