Where To Turn When Cheap Oil Runs Out

Last week we explored global peak oil. We concluded that oil prices are going to skyrocket in just a few short years. This week I’d like to examine the state of peak oil in the United States. And, more importantly, figure out just how we’re going to avoid the crash.

The death of cheap oil is going to become as widely known this year as global warming. In fact, people will be more concerned about our energy crisis than the weather.


I know last week I told you to forget about depletion, but now it is time to consider its consequences.

Oil depletion results from extracting and consuming oil faster than it can be replaced. Oil wells typically experience a dramatic decline, as seen here. Initially, wells begin producing at a very high rate. Less pressure is needed to pump the crude out of the ground.

Energy and Capital