IEA Economist Warns about World Oil Supply

Ever wondered if maybe oil prices and therefore gas prices will stay high forever? Today is not like 10 years ago: gas is expensive. The International Energy Association is warning us that gas may never be cheap again. In fact, it could get worse. This is due to a phenomenon known as peak oil. Due to the fact that all of the best oilfields are now used up, we have to get out oil from lower quality ones. The result is not that we are running out of oil, but that the rate we can get it up from the ground is going to go down. Imagine that you have a huge tank of water so there is no trouble with the amount. Now imagine that you can only get the water out through a pinhole. Although you have an unlimited supply, the tiny amount available per day will cause problems. The same thing might be about to happen with the world's oil. We will have huge, practically unlimited amounts of oil in the ground, but we will only be able to pump up a trickle each day.