End of cheap oil: Growing prices, demand raise uncomfortable questions

The world’s thirst for oil might soon outstrip its capacity to produce it

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Americans depend heavily on petroleum to power their cars, grow their food and heat their homes. Price spikes in the past coincided with economic recessions, and record prices this spring led to worldwide protests and economic pressures in the United States.

Many think the country should kick its oil addiction and switch to alternative fuels in an era of increased global competition for declining supplies, an initiative already under way. But Americans must prepare 20 years ahead of the peak to avoid fuel scarcity, according to a 2005 report commissioned by the U.S. Department of Energy.

Some peak oil analysts believe it’s already too late, that the decline in production has begun. Optimists believe the peak is decades away.

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