The world - and of course the US - now faces an epochal predicament: the global oil production peak and the arc of depletion that follows. We are unprepared for this crisis of industrial civilization. We are sleepwalking into the future.
The global peak oil production event will change everything about how we live. It will challenge all of our assumptions. It will compel us to do things differently - whether we like it or not.
Nobody knows for sure when the absolute peak year of global oil production will occur. You can only tell for sure in the "rear-view mirror," seeing the data after the fact. The US oil production peak in 1970 was not really recognized until the numbers came in over the next couple of years. By 1973 it was pretty clear that US oil production was in decline - the numbers were there for anyone to see, because the US oil industry was fairly transparent. They had to report their production to regulatory agencies. And low and behold American production was going down - despite the fact that we were selling more cars and more suburban houses. Of course we had been making up for falling production by increasing our oil imports.
Now, some of the most knowledgeable geologists in the world believe we have reached the global oil production peak. Unlike the US oil industry, the foreign producers do not give out their production data so transparently. We may never actually see any reliable figures. The global production peak may only show up in the strange behavior of the markets.
The global peak is liable to manifest as a "bumpy plateau." Prices will wobble. Markets will wobble - as the oil markets have been doing the past year. International friction will increase, especially around the places where the oil is - and two-thirds of the world's remaining oil is in the states around the Persian Gulf where, every week, a half dozen US soldiers and many more Iraqis are getting blown up, beheaded, or shot.
More at Clusterfuck Nation.