Many "peak oil" advocates feel, that since we are near the world peak of
crude oil production, that oil prices will exhibit a period of an undulating
plateau. As demand increases we will bump up against production shortages, and
the price of crude will skyrocket, thus raising energy prices to the consumer.
This will cause a mini economic recession which will drive down energy costs.
This cycle will repeat for a decade, or so, until we reach a state of terminal
oil production decline.Maybe the doom sayers are right.
There might be some wisdom in recognising that the president, be they republican
or democrat, has virtually no direct influence on fuel prices. Except newt
gingrich. He had the plan.
As we have easily 200 years of oil the concept of Peak Oil is not too valuable
at the moment. Oil prices will affect the election as if they are down Obama
wins. If they are up he loses. It still is disheartening to fill up for $60.
For some people that is nearly a day's wage.
Does this mean that Nancy Pelosi and Bush's other critics were wrong about
Republicans causing high gas prices?