Peak Oil is real, the true crisis

I may focus on various economic issues, focus on currencies, gold, food, and energy.

But the single worst disaster the world faces is peak oil.

The global society is predicated on cheap energy. Without it, the laptop I am using right now would be insanely expensive to produce.

The world is facing catastrophic problems with energy costs, as the world is too dependent on oil for energy. Oil unfortunately has a problem with increasing production capacity to meet increasing demand from China and India (2.5 billion people) and western consumption. The US is already back at peak consumption levels set back in 2007, with a weak economy.

The concept of Peak Oil eludes most people, and many debate it as real. Let me be crystal clear what peak oil means to me. Oil will NOT run out in the next 50 years. Oil will continue to be more expensive to procure and rise in price by lack of increasing total global output. So in a sense, peak oil is lack of continued increase in net oil production, at a low price.

The net result is too little oil for too much demand, with higher production costs. This will be a continual problem for the rest of human existence until we can find a new primary energy source.

The net result will be increasing costs in food, energy, and consumer products relative to income. This is in-line with my view of continued downward spiral of US living standard, along with western countries, until these economies can experience a rebirth away from debt and new energy sources.

To articulate finer points on this issue, I have links to resources.

Shell Oil predicts Great Depression 2.0 Sooner rather than much later - Full PDF here

Financial Sense News hour podcast, Energy Crisis likely in 2012

Baron's Magazine, calling for Oil at 150 a barrel and beyond.

As a side note, Saudi Arabia is building a large solar farm. For the largest oil producing country in the world to entertain Solar tells me they think it will be cheaper than consuming their own oil.

Mentioned in the Shell article is movie Collpase, never heard of it. Snippet below.
UPDATE 6-21-2016 - the PDF and video are gone, I found alternate PDF copy here