With so much going on with Europe's debt crisis, the continuing disaster and economic contraction in Japan, and the potential for a very hard landing in the Chinese growth miracle (which is in the running as my favorite "black swan candidate" for 2011), I am going to return our attention to oil in this report. The next report will assess the developing and unfolding debt crisis that will drag down most of the developed economies at some point, and this report will provide essential context for understanding why this result is inevitable and when it will occur.(Emphasis mine) Go read the whole thing:
The Next Oil Shock
The reality involved in getting at the non-conventional oil is really just a story of declining net energy; the red curtain will extend down into the luscious green space that represents the surplus energy available to society. Less net energy means less economic activity and complexity. It means less growth. Below a certain level, it means no growth at all. And eventually it means persistent negative growth, a possibility not yet priced into any financial markets.
Why Time Is Short Now That We're Past Peak Oil
Read more: http://www.businessinsider.com/why-time-is-short-now-that-were-past-peak-oil-2011-5#ixzz1Nlo7k3Rs