Something to consider: what if Peak Oil consists of gasoline at $2.50 a gallon, but all the local gas stations have gone out of business, so you have to drive 100 miles and wait in line for 4 hours to buy gas, and you can only get 10 gallons at a time?
In my opinion, prices can and will go much higher... lots of energy in a gallon of gas -how much would you pay some one to push your car 30 miles down the road at 60 miles per hour?? Some people will let their yards go unmowed, but others will want to mow it a few times a year, use a rototiller or chainsaw or other machines.
ReplyDeleteShortages and high prices are both to be expected. The scenario you described will be far into peak oil, I think. In the early stages of the shortage, prices will be the main rationing method. Many gas stations will close as the market will contract, but as long there is not a total collapse, people will be producing and trading gasoline in some limited fashion. Until we wean ourselves off oil almost completely, there will be demand, and people will trade it to make money. Lots of stories about the former Soviet Union, people would have 5 or 10 gallons in a garage, they would search out buyers and exchange it for money, jeans, food, vodka, etc.
Thanks for stopping by, Jonathan, I appreciate your comment.
ReplyDeleteI agree, your scenario is much more likely. Probably the scenario I presented would require government intrusion.