A world without oil

Can you imagine a world where there is no affordable energy source? It means that you may not drive to your work. It means that instead of going to a super store or a mall about 30 mins away, you will need to rely on your corner store for your groceries. It means that instead of flying across the ocean for your vacation, you will be spending time with your family at a local park. IT means that you cannot take kids to their soccer games if there is extensive driving involved. In essence you will effectively be transported back a century, perhaps more back. 

Is this possible? Is what Jeff Rubin saying, makes sense?

Well, it definitely makes sense. I hope he is not right though

The premise of Rubin's argument is relatively simple and straight forward. The crux of the argument is that we rely on cheap oil for our day to day living. It is not just for the fuel that we use in our cars but also the electricity that we use requires oil for manufacturing. The clothes that we wear require transport from far away lands which requires oil. Even the food that we eat, is delivered to us from far away farms which requires cheap oil 

He has also highlighted the significant roles that cheap oil plays in the growth of a nation's economy. In short oil, or more importantly, affordable oil is the key to economic well being of nations as well as individuals. If oil gets to be too expensive, then that there is no other replacement fuel source that exists today. In other words, if oil gets to be too expensive to afford, then we will need to make tough choices (the likes of which our parents didnt have to worry about.

Imagine the scenario that the gas prices go up 10 times than what they are today. That will significantly increase our gas budget. Since our income is unlikely to increase 10 fold, we will need to cut back on other places. However, there is another catch, as the gas prices are going up, so will the price of all things requiring transport, will go up at least 10 times. Therefore the loaf of bread, the stick of butter, the milk, the clothes, everything will cost more.  Also, what about the prices for items which require oil in its production -eg electricity,their prices will be going up to.

 So, as you can see, it is not a pretty economic picture.