Peak Oil? It's Peak Politics
Examples of this include Iraq and Nigeria, where terrorist attacks and political incompetence is holding back oil production way below capacity. Regulations against foreign investments are similarly preventing potential oil fields from getting started in Russia, Venezuela and Mexico. And in the United States, Democrats along with some Republicans, including John McCain, have stopped oil drilling in Alaska and other parts of America for environmentalist reasons.
In addition to these factors holding back oil production, there is another political factor contributing to making oil extra expensive, at least in the short- to medium term: central bank inflation. Because oil is a commodity traded on global markets, its price is fully flexible and therefore react immediately to central bank inflation. By contrast most other consumer prices are more or less sticky in the short- to medium term and so central bank inflation will cause the relative price of oil to rise.