I understand the peak oil theory reasonably well. However I thought that the recent hike in petrol prices had more to do with refinery capacity than a current peaking of oil production.

ASPO articles that I have read suggest as the peak is passed oil prices may rise dramatically. They go on to say that oil will be a price setter for other energy sources (such as coal). As a net energy exporter I would envisage peak oil having a positive net effect on the Australian economy even though it might be bad for the world or for some individual Australian households

Thanks to David Worth for his summary, oil prices are already hurting some sectors and this trend can only escallate.

But it is also worth noting that higher energy prices are going to help to ameliorate many social problems that have come about as a result of our over-reliance on cheap energy

Urban social alienation, for one, as we all drive around in our one person cars.

The obesity pandemic, as we drive our kids to school and to every other event.

Not to mention global warming and climate change.

I am actually an advocate of higher energy prices, since present prices do not account for many external factors that are harming society.

That said, the national government does need to address the urgent need to offset social inequalities that will come about as energy prices continue to escallate.