A new internal working paper for the International Monetary Fund acknowledges physical constraints for oil production (peak oil) and foresees higher oil prices with negative impacts on economic growth. Although this working paper does not reflect official IMF policy, the fact that this institution is working on it confirms that the peak oil reality is starting to hit the financial elites of this world. Now the next step is recognising that this new reality will lead to a “post-growth” society and what this will mean for future global governance.
Read the full working paper “The Future of Oil: Geology versus Technology”.
On her blog Our Finite World, Gail Tverberg does an excellent analysis of this important working paper and comments on its weaknesses.