I’m expecting gasoline prices to rise after election day. I’ve predicted five-dollar gas by the end of the Bush-Cheney administration. But maybe I’m not sufficiently pessimistic:
Those falling prices at the gasoline pump may only be temporary. Indeed, they could signal the start of an era in which, forecasters say, “the death of cheap, abundant crude might unleash war and plunge the world into a second Great Depression.”
“Peak oil is a reality,” says Willem Kadijk, a hedge fund adviser quoted by Bloomberg Markets magazine. He is just one of many who believe that global oil production is now at or near its peak, and the only place to go is down.
“Once the flow crests and starts to decline, and some geologists say it already has, oil will no longer be able to slake the world’s growing thirst for energy,” Deepak Gopinath writes in summarizing the argument. “The result will be the oil shock to end all oil shocks.”
The price of a barrel of crude oil, which closed yesterday at $58.68, “will spiral to $200 — and keep rising,” he writes.
That “boom” you hear is not the economy.
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