Jim and Darren blogged about the possibility and probable impacts of very high oil prices. They both focused on consumer behavior.

At industrial level, oil prices will have an even greater impact. Unbeknownst to many, US industries feed on oil too. From California central valley to Iowa corn field to Kansas cattle ranches, regions have specialized into single products. The famed Interstate highway system is the cardiovascular systems of this highly independent organism. Oil is the blood that runs through it, bringing in nutrients for life and haul away wastes for survival.

Americans also depend on oil to generate fertilizers that feed the corn production system: affecting almost half of the foods in typical supermarkets.

Lastly, some one in the "field" told me that the earth actually has plenty of oil for everyone and for a long time. It is just a matter of costs to extract them. The easy oil fields are near depleted. The technologies and operational costs for harder ones require higher oil prices to sustain.

So, drink up, Americans. Chinese and Indians, learn from this.