This is VERY enlightening -- we all need to pay attention to news like this. It means that food is going to start getting very expensive, and of course gasoline, plastic, fertilizer, etc. Go in your backyard, and start digging yourself a garden now! There are many excellent resources online for gardening, which don't cost a thing. You want to produce at least SOME of your own food, to hedge against food prices doubling or tripling. If you could afford a tripling of food prices, then ignore the above advice.

"Based on EIA crude + condensate numbers through May, world oil production is down by 1.3% since December. However, as I have been predicting, production from the top 10 net oil exporters is down more--3% since December. Since domestic demand in the exporting countries has to be satisfied first, and since domestic consumption in most exporting countries is rising quite rapidly, the effective drop in net exports from these 10 countries is probably more than 5%. In other words, net exports are probably dropping about three to four times faster than world oil production is falling."
__________________________________________________________


Saudi Arabia, Kuwait, Iran, the UAE, all have peaked now in terms of oil production. Meanwhile, their populations still grow, their internal oil consumption increases, leaving less for export, and the quality of the crude goes from light-and-sweet to heavy-and-sour, with further difficulties for refining and marketing. If America loses 20 percent of its oil imports -- on top of steep depletion rates elsewhere (Mexico, the North Sea), plus political trouble in places like Nigeria and Venezuela -- then we can kiss goodbye a whole roster of things like WalMart, easy motoring on the interstate highway system, Walt Disney World, a continued profitable build-out of suburbia, and a diet of Cheez Doodles and Pepsi. I am on record, of course, as not being in favor of these things, but it would be very messy indeed if they all ground to a halt in a few mere months.