A few years ago, especially in the 2005-2008 period, many people were concerned that the oil supply would run out . They were concerned about high oil prices and a possible need for rationing. The story was often called “Peak Oil.” Peak Oil theorists have also branched out into providing calculations that might be used to determine which substitutes for fossil fuels seem to have the most promise. What is right about the Peak Oil story, and what is misleading or wrong? Let’s look at a few of the pieces. [1] What Is the Role of Energy in the Economy? The real story is that the operation of the economy depends on the supply of affordable energy . Without this energy supply, we could not make goods and services of any kind. The world’s GDP would be zero. Everything we have, from the food on our dinner table, to […]