Savage State of Torpor

Warren gets it.

via theOilDrum.com & Omaha.com

Buffett also said that the world’s production of oil, about 87 million barrels a day, is close to capacity. While the world won’t run out of oil this century, as one questioner suggested, Buffett said gradually depleted oil fields could reduce the amount produced.

Munger said he thinks oil production 25 years from now will be less than today.

“That’s not an insignificant prediction, believe me,” Buffett said, since demand for oil is growing steadily as the population grows and standards of living rise. “If oil production is down 25 years from now, it’s going to be a different world.”