I remember something called the Y2K bug, when the world's computers were due to crash in the year 2000 and cause global chaos because of a problem in the way that computers were put together. It never happened, partly because the problem was grossly exaggerated and partly because the prophets of doom were successful in convincing the small number of people who's computers were at risk to act.

So it is with peak oil. We have activists warning that we're going to run out of food and suffer from other catastrophes, when the more likely reality is that responsible people will take sane, calm decisions that will allow them to cope with a slow but steady reduction in liquid fossil fuel availabilities which are slowly but steadily increasing in price.

The current alarmism over peak oil is yet another attempt by well-intentioned but misguided people to motivate the community to undertake largely unnecessary actions in the name of protecting the environment or the foundations of our society or some other motherhood-type cause. Fortunately, we have leaders in the community, government and industry who will put the extreme rhetoric aside and make the necessary decisions to allow us to cope with the eventual but gradual shortage of oil and concomitant higher prices.

There's a big difference between Y2K and PO though...individual companies knew they were each under considerable risk of Y2K-related failures, and acted accordingly (and most started well before the media beat up the story). With Peak Oil however, most companies and individuals don't see themselves at great risk (of course, most aren't even aware of the risk). But the net effect of a large number of people having their fuel budgets stretched to the limit, or of genuine oil shortages actually biting can only be damaging to the economy.
Worse, there is very little indication at all that anyone has started preparing for the eventual reduction in oil availability. Most of the steps that can be taken would have a multitude of benefits, and unlikely to be harmful even if oil production doesn't peak for another 3 decades.

Oh Bernie;
What you say is correct if a couple of things were true.
First that the politicians would acknowledge the problem.
Second that this was the year 1990.

Read the Hirsch report; we need decades to adapt, it is not something
that can be overcome in months.

A friend of mine, a physicist at Macquarie, has a friend who is well up in
a world wide oil search company. He says Australia is in much bigger
trouble than many overseas countries due to our size and lack of
prospects of finding more oil.

No peak oil is not the dream of some misguided do gooders. The date may be wrong the mechanics of the decline may be wrong but oil is finite.
Equally our planet is finite and calculations by sober scientists have shown we are living beyond earth’s means.
Sure such cries are ages old Malthus or even further back regularly repeated so far our technology has allowed us, well the developed world to overshoot and indeed some measures are increasing, life expectancy et cetera others declining land per person etcetera
Each is true.
Natural Capitalism, which equally is not to be found on political web sites, integrates and adds system management to ideas of a number, Lovins, Wuppertal Institute, Factor Ten Club et cetera all run by hard headed scientists seeking a way to continue current living at current standards. N.C. argues for example that Capitalism only looks at through put on the basis that resources are infinite, as one declines a replacement will be found. True so far except for disposal, a suggestion of The Club of Rome 1972, and water. Sure there is the ocean but so far not enough non polluting energy to power a world system.
Soon despite the claims of genetic engineers not enough land.
I fear peak oil is real and we remain in denial t least the public do the Americans Chinese Russians British governments et cetera all have plans, usually involving war since might makes right in to days lexicon.
I cannot find the data as to how many of the measures suggested by the above have been implemented.
Houses can be energy neutral or suppliers, cars are in design reducing their call on oil, each will reduce emissions.
Population, since population times consumption means more pollution, waste and diminution of resources, is all but central to current economics. Doubtless the stronger will, unless armed like Korea, will be penalised.
So the world progresses and I have not even mentioned the born again who believe in a second coming and are prepared for others to die to achieve the aim. Like Iraq!

‘Sleepwalking over the oil peak’. Indeed we are Michael. Great article.

Wow! There’s a hell of an upheaval on the way. Peak oil, or more specifically, the rapidly rising price of oil and then its shortage of supply, are going to have profound effects on our society.

Peak oil is vastly more important than climate change, or the end of the mining boom or the drought or rising interest rates.

When prices rise and/or shortages really hit us, everything will change. The price of food and commodities will greatly increase. Supply lines will be cut. Inflation and unemployment will blow out. Law and order will collapse. Our lives will become very very much harder.

We are so totally addicted to and dependent on oil.

We really need to immediately go on to the equivalent of a war footing nationally, and work as hard as we can towards developing alternative fuel sources, improving efficiency in usage and developing an overall sustainable society.

The very existence of our society as we know it depends on it.

.
I couldn’t more strongly disagree with you Bernie

An excellent article, Michael... thanks. I was having difficulty sleeping anyway. So... the end is nigh. Soon we 'modern' humans will discover that the realities of life are droughts and floods, times of plenty followed by starvation and death, war and peace... In the "West" for the last half century we've enjoyed the most peaceful, bounteous, years in human existence. Soon we'll pay the same price the rest of the world had been paying for our gluttony, because that's the way closed systems work; gross imbalances self correct. It is going to be very, very unpleasant.
Pass the cyanide capsules.
ybgirp.