Demand is rising, and will continue to do so even if there is a world economic slowdown, because the developing world aspires to Western standards of living; supply is not keeping pace, as exploration and extraction become more difficult and expensive. R&D in alternatives has been inadequate. The crunch could start as early as 2009.
Jim draws two broad conclusions:
- Prepare to live in a world where energy is much more expensive. There are obvious implications for your transportation and housing.
- Invest in energy stocks.