15 months ago, I wrote a diary about Energy Economist Jeff Rubin's prediction that within 15-18 months, we would see $100+/bbl oil prices.
A large percentage of responses to that diary was complete scoffing at the notion that it was possible.
Now, Rubin's prediction has come to pass and within the time frame he predicted. This makes him a consistent and credible economist and it is time to really listen to what he has to say. We should take to heart his dire warnings about what life will be like for us in the future. We can choose to wither away or we can make a positive future for ourselves without the dependence on oil.
Below the fold, I'll re-embed the video that I referenced in my year old diary because it is as relevant today as it was then.
To Recap his predictions:
1. Oil will cost over $100-200/barrel in the next 10-15 months because of demand by OPEC countries PREDICTION COMPLETE
2. We have plenty of oil in many places, but the cost of extraction is very high e.g. oil shale, undersea etc.
3. $200/bbl oil means $7/gal gas
4. This means Distance costs money disrupting the global trading economy of the past 30 years.
5. The title of his book is: Why Your World Is About to Get a Whole Lot Smaller: Oil and the End of Globalization
6. He theorizes that we will see a return of industry to our shores by market forces.
It also means "DRILL BABY DRILL!!" ain't gonna work.