In the textbook "Managerial Economics" on page 149 the author refers to a book from the 1970's called "The Limits to Growth" that predicted the world supply of oil would be exhausted by the year 2003. As we know the oil did not run out in 2003. This is due to spikes in oil prices witch helped control the consumption of oil.
On the demand side higher prices encouraged consumers to conserve oil use, and find alternatives to energy and use other resources.
On the supply side, the higher oil prices encouraged producers to seek out new sources of supply, and encouraged businesses to develop new energy sources.Even today many are predicting when we will run out of oil.
And according to the article theinsider we will run out of oil and natural gas in the next decade. So is this prediction completely off just like before? Or has the market just flat out exhausted all of it's sources of oil no matter how high the prices get? I'm sure through price increases and alternative sources of energy the date of oil exhaustion can fluctuate dramatically.