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Peak oil (also called the Olduvai Theory or Hubbert's Peak) is the term used to describe the point at which half the oil from a well, a field, a region or a nation is extracted.  Why the half-way point is noteworthy is because the first half is the cheaper and easier half to obtain.  The second half is more expensive, more difficult to obtain, and always offers diminishing returns.  The United States has passed this point back in 1970 as illustrated below.  Discovering more resources is proving even more difficult, as discovery peaked back in 1930.

Peak oil can also be used to describe the worldwide oil production, as well, and this is a concept beginning to get some serious attention.  In other words, consider a similar chart below used in describing a worldwide phenomenon even as demand for oil continues to rise.  It is only a matter of time before that point is reached, if we're not there already.  Notwithstanding, the United States, in particular, is a slave to a constant supply of cheap oil.  The U.S. consumes 20 million barrels of oil per day of an entire world which consumes 80 to 85 million.

Because oil is ingrained into nearly every aspect of modern life, this will have dire implications for us all.  This won't be a mere recession.
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