by Disgusted » Tue 14 Dec 2004, 11:30:22
The question is downright stupid.
Let's imagine that peak oil occurs in 2008, according to Campbell's predictions. This does not mean we are in Campbell's soup. all it means that if the 2008 production is n bbl, then 2009 will produce, say, 0.99n bbl, 2010 0.98 bbl 2011 0.97 bbl and so on. These changes are negligible with respect to random variations of the economy. Why, the DJ index can change that much, and more in a single day! The effect will be negligible in the medium term, as other methods come on line.
The Kookies, Fruitcakes and Idiots' brigade on this forum fondly imagines that the production in 2009 will be 0.01n, not 0.99n.
Of much more importance to the US economy are a) the National Debt, currently at an all-time high b) the cost of (unsuccessfully) pursuing a war, or several wars c) neglecting the needs of the various forms of social security d) above all, pursuing a policy of de facto devaluation of the dollar, which will end up in a galloping inflation. This Administration will go down in history as the one that ruined the US economy, just as the pre-Hitler one in Germany did, for quite similar reasons.
This will have an auto-adjustment effect, because the new poor will not be able to run their SUVs and Hummers, so the demand for oil will drop more rapidly than the production. Perhaps the cost of oil will have risen to $200/bbl or more, in today's money, by the end of the decade but it's more likely to be $1,000 or more in the 2011 value of the dollar, because of the constant devaluation of the dollar as more and more is printed to pay for the profligaate spending of the Administration, which is more intent on being the world dictatorship than balancing any budget. Of course, a can of beer may well be $10 or 15, as well, in a discount supermarket. This will have neither cause nor effect on PO.