Thus spake T. Boone
I think you'll see $80 oil before the end of the year. There's no question in my mind that oil has peaked. If you've already peaked, you'll start to decline. Can you replace it? Probably not. What happens then? The supply goes down, demand goes up, and price goes up. It will be a case of, how much does the consumer want to pay to get gasoline?
I don't know whether $4 chokes them. Three dollars didn't. But, you know, Europe has seen $5, $6 for gasoline. So I have the feeling that you're going to see the price go up in the U.S. I think cars will get smaller over time.
He also has an intriguing remark about natural gas. Go read.