A lump of coal should be on everyone’s Christmas list this year.

Whether you subscribe to the theory that we have reached “Peak Oil” or not, one thing should be clear: demand for oil is increasing rapidly, while supplies are stagnant to declining. A quick jump back to Economics 101 should help to validate this prognosis. An increase in demand without an equal increase in supply creates higher prices. The price for a barrel of oil has more than doubled over the past two years and has since been stubbornly holding around the $60 mark. We will surely see the price drop into the $50’s and quick dips into the $40’s aren’t unfathomable. However, the days of oil at $30 are well behind us.

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