The Desk

I propose an economic drill to increase readiness for peak oil.

America should have a scheduled test day [or two or three days], when we will simulate peak oil. The state and oil companies would withhold an amount of oil equivalent to estimated demand, or slightly below those demand levels. This would produce an examinable and realistic market effect like peak oil, a kind of economic innoculation against oil shortage. The real shortage is expected to hit markets in 2007.

The public would be educated about oil supply and energy, pollution, industry, and world economic distribution. We would discuss when real peak oil is expected to occur, and what kinds of effects it would have as demonstrated and otherwise, what consumers and industries can do to delayand reduce its effects and to recover from it quickly when it arrives.

During this test fuel prices would likely rise considerably and in a semi-regulated manner, and be returned to pre-test levels after completion. This expense may be post-regulated by the state and proceeds may be returned to families hit hardest, to charities, and to industrial innovation efforts. It would raise public awareness of the problem, which is the primary catalyst of the test, and which would produce the largest effect. From there, the awareness could be focused into consumer and industry innovation. Consumers would become aware of the imminent nature of peak oil and invited to join an international debate and market shift about what to do in response to peak oil.

This will noticably reduce the effects of the real peak oil when it hits and mentally prepare Americans and the world, increasing readiness and response. A televised and podcast address from the president, oil and motor company CEOs and a series of free public debates on the topic, internet forums, and the resulting research, corporate interaction, and magazine coverage would lead to better methods and alternatives, and possibly be the beginning work of refining legislation on the topic.

We can beat oil. This is one way among many that will be required.