So oil hit a high at over $96 per barrel. This means trouble for everyone. It has to do with many factors, but one of them is the oil supply and the peak effects either the real peak or perceived peak that is occurring which is going to trickle down into higher prices and inflation everywhere. Remember the oil crisis of 1973? Oh yeah, most of us weren't alive then. Well, oil prices skyrocketed because the Arab nations cut supply to the United States among other countries. This isn't happening by way of political powers, but natural effects because the oil supply is perceived as dwindling quickly. Basically, the demand is growing steadily and the supply and production of it is at its maximum value and is perceived by the financial world to gradually fall over the next 20 to 50 years. Many people say 20 to 50 years, well we have plenty of time to figure this out, but that is not the case because the financial market reacts to forecasts and the price of oil is already very high.
It will continue to rise and resulting rises in prices of food, products and anything that requires gasoline to bring the goods or services to you. The anticipation is stronger than the actual effects, at the present time at least, therefore gasoline will most likely hit $5/gallon by the end of the decade (2 years and 2 months until 2010), and will continue to rise. Economic inflation and recession from this increased oil price will result. It happened in 1973 and will happen again. This is the beginning of the effects of the peak oil crisis we are facing. Thank goodness a few car companies have finally realized that and have hydrogen powered cars ready to be put into full production. If only we could get some government mandate to the oil companies to help set up the hydrogen fuel infrastructure.
The "peak oil" energy crisis is a major concern of the 21st century. If you don't know what I'm talking about go here:
http://www.lifeaftertheoilcrash.net/ (slightly slanted website, but still good information)
GET READY EVERYONE for the nasty future we have in store for ourselves unless we do something to switch our energy usage!
Think global warming is a threat? Try peak oil production and future political powers fighting for economic and political stability because of stock crashes due to the price of oil and the scarcity of a disappearing drug that constituents of large industrialized nations are addicted to like heroin. What happens when a heroin addict quits cold turkey? Withdrawal anybody? We are addicted to oil. That is an inescapable truth. Think gasoline is expensive right now? In a couple decades you will wish that the Iraq war was for the oil because that conflict is minimal over what will happen!