continued...

Behind Door Number One

The first, approaching very rapidly, is when demand for oil outstrips production. At a minor level (although American motorists wouldn't says it is minor), the rapid ramp up of US oil prices this Spring was a small demonstration of this. When you have a commodity you can't do without, whether computer chips, grain or oil, even a slight under supply can lead to a to a huge run-up in prices.

This situation is one that will probably come and go many times in the next few years. Reduced oil supplies will quickly increase oil prices and then new oil supplies will be rushed to market, brought online by increasing prices and world political pressure, which will then produce a short-term reduction in prices. However the net effect will be more like that of walking into a gully as you climb a mountain range: even if you're going downhill at the moment, the general trend is up, way up.

Behind Door Number Two

The second trend is the more drastic one. At some point not too far in the future (most likely in about ten years, but it could be twenty), actual world oil production will begin to decline precipitously — quite possibly by 50-60% in ten years.

We will “fall off the cliff” of over dependence on oil unless we prepare alternatives for a soft landing. No amount of screaming or pleading will make the landing any softer. Estimates are that --if we are prepared -- the net drop in world energy availability will only be about 10%. However, this comes with a warning. If we are not adequately prepared with alternatives, the loss in available world energy could be as much as 70%. And, with anything remotely near a 70% drop in available energy, virtually every major economy in the world would come to a halt.

Invest in Parachutes

So the fall is coming and the question for your fellow aeronauts is, "Will that be with parachute or without?" Oh, and parachutes are optional and must be purchased in advance. No exceptions.

See The Hottest Investment for the Hottest Century

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