Peak Oil and the Second Great Depression
A book that explores the economic impact of Peak Oil.
by Kenneth D. Worth
In Peak Oil and the Second Great Depression (2010-2030), Worth argues that the likely peak in global oil production (Peak Oil) occurred in the period 2005-2008, due to the peaking of Saudi Arabian oil production during that time. In the years ahead, it is argued, continued economic growth in the developing world including China, India and Brazil (as well as within OPEC) will put upward pressure on the price of oil, which will create severe economic difficulties for the indebted developed economies (such as the US) which rely on imported energy.
Mitigation measures in the form of conservation and increased domestic drilling (an option available only to the US and Canada among the larger developed economies) will be insufficient to offset dramatic increases in the price of imported crude oil.
Dramatic changes in the economy as a result of Peak Oil will alter the approach that would optimally be taken by investors and those wishing to preserve savings. The issues of asset allocation and sector weighting are explored together with alternative investments in commodities and real estate.