With oil production increasing at the rate of 1% a year versus demand rising at more than 2% a year, it is estimated that a supply crunch will hit a critical mass within five years causing a significant jump in oil prices.

The Financial Times reports on the forthcoming crisis. They believe that OPEC will have to sharply increase output to meet demand in coming years, but there will come a point where they cannot meet demand at full production capacity.

Should that scenario, known as peak oil in some circles, transpire, prices will rise until demand is squelched. We could look back fondly at current gas prices.

Further Reading:

• Will Gas Prices Drop Soon In U.S.?
• Motorists Hot Over Hot Fuel