Gail Tverberg is a writer and speaker about energy issues. She is especially known for her work with financial issues associated with peak oil. Prior… The price of energy has been too low for producers in recent years while the price of extraction has increased, this will cause the global economy to shrink. As the economy changes from growth to shrinkage, the rate of shrinkage of GDP will be greater than the rate of shrinkage of energy consumption. As interest rates rise, energy supplies will become even tighter, leading to a shortage of goods, a potential increase in conflict, and rising debt. It is my view that when the energy supply falls, it falls not because reserves “run out.” It falls because economies around the world cannot afford to purchase goods and services made with energy products and use energy products in their operation. It is really a price problem. […]