What will happen when the cheap oil runs out?

The author states that world-wide production of conventional oil will begin to decline in a few years, and crude oil prices and pump prices will rise, perhaps steeply, because demand will exceed supply. The price increases will reduce transport activity overall and make it more fuel efficient. Less transport activity could be good for the earth, good for the local environment and good for the health of people, animals and plants. The price increases could be good for the Canadian economy, and Canada's oil revenues will increase. As important could be a surge in local production - of agricultural produce and manufactured goods - to avoid increased transport costs. Transport sectors for which high fuel use is a high proportion of operating costs will be especially hard hit. Aviation is bound to decline and massive expansions in airport capacity make little sense. Canada has some special challenges, notably population growth and large amounts of oil that requires a lot of energy to produce. Even the expected massive price hikes may not be enough to ensure that Canada meets its Kyoto commitment. Other measures may be required such as toughing fuel efficiency regulations for trucks. 4 refs