I was reading an article yesterday from these folks:
http://www.peakoil.net/
Good stuff in there.
Also, this morning, I was reading an article in French weekly magazine "Marianne" while on the train to work.
This article compares oil prices, in purchasing power equivalent, between now, and the two oil crises of 1973 and 1979. The current price of around $40 is equivalent to the price during the 1973 crisis, and to reach the equivalent of the 1979 crisis, the barrel would have to go up to $80.
But in both cases, the forces pushing up the price were geopolitical and geostrategical.
This time, although there is a small geostrategical component (unrest in Iraq and the rest of the middle east), the main component is the huge demand in China. In fact, the rapidly increasing industrial ouput of the Chinese economy, while providing the affluent West with cheap consumer goods, is pushing up the prices of most raw materials.
Not only that, with the increasing internal demand for feedstuff for cattle and poultry, China is pushing up the world market prices for soya beans.
You wait till every man in China is drinking ten pints of beer per week, the price of barley will go through the roof, pushing up the price of beer in England.
There's no getting round it; we're going to have to get used to the idea of things costing realistically high prices, after having had continually cheaper and cheaper goods over the last century or three.
Keith.