Peak Oil may be hard to time precisely but its precursors are numerous. The Saudis say they're cutting back production due to oversupply. It's true that recent surges in the prices of energy and other commodities are primarily due to the Fed's quantitative easing, with all those excess trading dollars from money-center banks needing release somewhere. It still gives us a good image of what will happen when Saudi Arabia finally concedes that it can't increase production even if it wants to once its fields pass their peaks.
China's quest for the emerging world's resources has now prompted countermoves from Uncle Sam. The U.S. wants to subsidize the expansion of a Colombian oil refinery. There should have been a quid pro quo, like a requirement to sell the refinery's products to American distributors. So where's that deal? Did we not think this through? China's going to be the only player left standing if we don't step up our game.
Presidential wanna-be Donald Trump lets it be known that his ego is a suitable substitute for good judgment and international law. He wants to seize oilfields in Iraq and Libya. I hope he's the first one to volunteer for military service if he doesn't get elected. If he thinks it doesn't take hundreds of thousands of troops to guard Iraqi oil infrastructure then he's welcome to go and find out firsthand just what level of security that requires. That kind of ignorant, irresponsible, inflammatory rhetoric will become more common in America once our middle class realizes it has been permanently priced out of motoring at will. It will be an unfortunate day if such rhetoric is taken seriously enough to elect its sponsors.