The economist's argument that an oil shortage will be mended simply by the laws of supply and demand doesn't hold water (or oil...nyuk nyuk)--the idea that as oil prices go up, people will stop buying and start seeking alternative energy sources runs contrary to reality:
"Won't the problem take care of itself? As prices rise, people will voluntarily cut consumption, right? Well, in a 2003 article, energy economist Andrew McKillop showed that at least during the 1990s, the opposite happened. Each time oil prices rose, world demand rose within six-12 months. And over on the far side of Hubbert's peak, it will be physical reality, not economics, that governs consumption. With supply shrinking year by year, every barrel that comes out of the ground will likely be burned lickety-split." Stan Cox on Alternet
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