Expect to see more alarmist newspaper stories soon. The price of oil is near the $US100 a barrel mark and it looks like petrol will hit $1.30 a liter at the pumps next week. So expect horror stories about the coming crisis of Peak Oil and the end of cheap petrol. Well I'm a skeptic. I remember the energy crisis of the 1970's , that was supposed to bring the end of civilization as we know it but after hitting a peak around 1980 the price of oil went right down as new fields came into production. The current high oil prices are bound to increase oil production as well as encourage conservation. Also its debatable that petrol prices really affordable, at least if you have a modern small car. My wife travels about the same distance to work as me, she drives our Colt, I catch the train, yet my weekly train fare is higher then her petrol cost.
Ronald Bailey at Reason has more.
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