Peak Oil is Back!

Today I was at the Post Office on bayou Saint John and I discovered this headline and this graphic on the front page of USA Today (television in print).

Subheader reads, "But analysts aren't bullish

the rally will last long."

Note how the circle representing the globe is more than half empty of oil. And this is how oil prices behave in a post-peak environment, where the global economy is laboring under a huge overburden of debt. As oil prices spike, the high point met is lower than the previous highest peak price, but the cost of bringing oil to market increases because the extraction is becoming more difficult and requires more resources. For more information, see Gail Tverberg's Our Finite World and Steve Ludlum's Economic Undertow weblogs. The two websites are filled with immense amounts of information packed into each posted article explaining why this is so, and must be so.