Cliff Wirth: ”Surviving Peak Oil: Obstacles To Relocation”

Oil and natural gas depletion will soon begin to undermine the capacity of urban and metropolitan areas to sustain human life. Modern urban and metropolitan life depends on oil and natural gas for food production and distribution, residential heating, water purification and distribution, sanitation, and the power grid that delivers electricity for the pumping of gasoline and diesel, airports, communications, elevators, home heating controls, and automated building systems. As international food transport collapses, most oil rich nations face starvation too, regardless of how much oil they possess. Oil depletion means population decline for all urban areas.

The notion that urban and suburban dwellers will relocate to small villages in agricultural regions is unrealistic. In the ensuing Peak Oil generated global economic depression, the value of urban residential properties will plummet. Increasing unemployment will slow new house sales and accelerate mortgage and property tax foreclosures. With more and more urban homes up for sale, their prices will decline sharply.

And, as the price of urban property declines in value, rural property will increase in comparative value. Indeed, in the last few years, the prices of agricultural land have increased. Soon, to move to a rural area most urban home owners will have to sell at a low price and buy a rural property for a higher price. The financial loss in selling and buying property will stifle the relocation to rural regions for most people.

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