India like China is blessed or cursed depending on your viewpoint with an abundant population. India has 1.1 billon citizens and is awakening from a deep slumber. The rapid acceptance of India as an educated, bilingual, technologically advancing population is stunning. In only a few short years India has accelerated into the 21st century and is rapidly gaining speed. Most analysts feel India will surpass China by 2020 and become the dominant economy on the planet.

This will pose a severe problem for the global oil economy. Where China's per capita oil consumption is 1.6 barrels per year, India's consumption is only 0.8 barrels. At the rate their economy is expanding this will not last long and they will be putting an unsupportable strain on global supplies.

See the comments on China for further complications.

While China is a communist society India is democratic and individuals are encouraged to be entrepreneurs. They are also very highly educated with many holding multiple degrees. They will embrace capitalism in all its forms and from what I understand from people on the ground in India there is an explosion of commerce underway.

If India's population only increased its consumption by 50% per person to a rate of 1.2 bbls per year it would increase demand by 1.8 million barrels per day. That would be more than a 2% increase in global demand and it would be impossible to produce enough oil to meet it. While this won't happen overnight there is a rising demand cycle in India. They will eventually double and triple their current consumption and put a severe strain on already tight global supplies. Add that to a similar miniscule increase in China's demand per person and demand would permanently be more than supply.

Here is the $64 question. Do you see any possible scenario where India and China don't increase oil consumption by 1/2 bbl per person over the next 2-5 years? The answer is a resounding NO. That is not even a remote possibility.

The next question you should consider is where will that extra 3.3 million barrels per day come from with oil supplies already stretched to their critical limit?

There are no answers to this question because the supply does not exist. That means oil prices are going higher, much much higher and there is nothing we can do about it. When you pull up to the pump and gas is $5 a gallon, or higher, you will wish you had paid attention to the analysts who have been predicting this for several years. The American public is blissfully unaware of what is coming and it will change civilization, as we know it.

Your challenge today is what to do to prepare yourself and your family for the coming crisis.