Val,
<< Fossil fuels, like land, exist in a finite quantity. Populations continue to grow (well over 5 billion now) and industrial capabilities also grow - fossil fuels do not. We are catching up now. At some point fossil fuel prices rise quite a bit - I think we are near this point.>>
Theoretically, fossil fuel supplies are limited. However, economically they are infinite. As demand grows and supply contracts, rising prices make exploration more attractive. Improved technology permits access to previously known, but inaccessible, reserves, supply increases and prices rebalance. Also, every time prices rise sigificantly, innovation is stimulated to develop alternate energy sources and energy conservation methods. Prices stabilize again, possibly lower than before the last runup. That's why oil prices are lower today (in real dollars) than they were back in the 60's. I don't look for fossil fuel prices to bring on a great economic calamity.
Just my $0.02
carlzbad |
