posted on Jan, 27 2012 @ 07:16 PM
resources don't just get used at the same rate until they "run out" like the "E" on the world petrol tank. My how simplistic.
As a resource becomes scarce, its price increases, driving some buyers to alternatives. This reduces the aggregate demand.
A real world example of this is the use of the Ogalala Aquifer on the north American Plains. in 1970, the US's EPA predicted that the aquifer would
be entirely depleted in 30 years. In 1997, they said the aquifer would last about 100 years. What was the difference? Increasing fuel costs made the
price of retrieving the water for irrigation untenable for many farmers. Because it was so expensive to pump the water to the surface, farmers found
ways to reduce their water consumption by 80%.
What will happens as the price of oil escalates exponentially? Consumers will find other solutions, before the last drop is even brought to the
It's not nearly as exciting as the "End of Oil" conspiracy, when populations adapt to changing environments....