Reply #5: In a nutshell, it's demand for oil outpacing oil supply

[IrateCitizen]

As more developing economies continue to grow along the lines of a Western model, their energy needs will skyrocket (case-in-point: China). This would all be fine if the oil supplies around the world were able to keep pace, but they are not. Peak oil is the term used to describe the moment at which supply is just able to keep up with demand. The time after that moment is characterized by demand outstripping global supply.

This event is extremely significant, because it likely heralds the ushering-in of a time in which nations will begin to fight for control over declining resources. Oil is instrumental in not only raw energy, but also in activities ranging from the production of plastics to modern agriculture. Of course, the impact of this event could be lessened by a widespread committment to non-carbon based forms of energy, but the will just doesn't seem to really be there yet.