Remember all the talk about peak oil a few years ago? You don’t hear much about it today. The United States, supposedly almost out of oil, began producing more oil than Saudi Arabia a few months ago.
No one thinks there’s an infinite supply of oil in the world, but the peak-oil proponents were claiming that world oil production was about to peak and then head forever downwards just as China and India were consuming more, leading gasoline prices to inexorably rise to $20, $30, even $100 a gallon. This would force everyone out of their cars and onto mass transit, a prediction that was used to justify all sorts of otherwise ridiculous light-rail lines and land-use regulations.
The Antiplanner scrutinized these ideas eight years ago and concluded that those who held them had no understanding of the laws of supply and demand. For one thing, there are plenty of alternative sources of energy that are economically inefficient today but that could come on line if ever oil prices did rise enough.
