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Back in the 1920's and '30's and thereafter, America enjoyed cheap oil, and plenty of it. Our modern economy is based on the concept of cheap, abundant oil.
Unfortunately, oil is now no longer cheap nor abundant. In fact, supplies are running out due to depleted reserves, aging refinery equipment, and increased global demand (including increased demand in the countries that export the stuff). On top of that, much of today's oil reserves are in countries which are politically unstable, don't like the U.S., or both. In other words, a perfect storm that is and will continue to reduce the amount of oil available to the U.S. economy, while at the same time driving up its prices.
And yet, our economy and very way of life is still geared toward cheap, abundant oil. We haven't adapted to the new reality. So if you add all of that on top of the current financial turmoil, what you're left with is scary, scary conclusions.
