In June-2005 a Chinese General said he expected China to be at war with the United States before the end of the decade. The comment was largely ignored but it is still the truth.

Current global oil production is around 88 million barrels per day. Pre recession demand was right at 87 mbpd. There is no slack, no cushion, no fall back position. In 2015 if you need oil to run your country you are either going to have to buy it at market rates, probably well over $250 a bbl, or take it away from somebody else.

With global demand growing daily and the two biggest populations in the world, China 1.3B, India 1.1B, woefully small consumers it is only a matter of time before paying for oil will not be an option. At what price does oil become unaffordable? At what price do the airlines shutdown? 28 airlines have quit flying so far in the last three years. At what price do consumers park/sell their cars and take up bicycling?

Those are all luxuries that oil can provide. We can do without those luxuries to some extent but there are things we cannot live without. Oil provides fertilizer and pesticides for our crops and provides the fuel to take them to market. Were it not for those items much of the world's crops would never get out of the ground. Once those crops are produced how will they make it to market? With diesel already over $4 in most places today, $6 in Europe, the 3000 mile Caesar salad will become a thing of the past when it hits $10 a gallon. American trucks will not drive across country to deliver a load of lettuce with diesel over $10. It will not be economical. Shortages of products in many areas will be routine while surpluses rot in others. Where does the government of each nation draw the line and start trying to take oil away from somebody else? Since the U.S. is the biggest single importer of oil it stands to reason that much of that oil will belong to us.

The U.S. has been the strong military power for decades. Without oil our power and projection of force will suffer. With only 270 million citizens we are far outnumbered by China, the ranking communist nation, at 1.3 billion. The U.S. has to feed only 1/4 the number of mouths as China but our problems will be the same as theirs. Their solution may be significantly different.

Over the last decade with an emphasis on the last five years China has been rapidly acquiring the latest military technology. They are preparing for war. Their generals freely admit it and yet the U.S. continues to ignore them. The U.S. did not even know about their latest attack submarine until a picture showed up on the Internet. They have purchased ballistic missiles, Ageis class warships, submarines, anti-ship missiles and anti-aircraft missiles from every country willing to sell it to them.

In July 2005 China and Russia signed an agreement to stand firm against American imperialism. In 2008 they signed another joint military declaration. They agreed to join together to prevent America from imposing its will around the world. Still, the U.S. sleeps soundly. Only in the summer of 2008 did America start to show signs it was waking up to the oil problem. Fortunately a financial recession appeared to slow down the eventual confrontation. India is suddenly our pal and we are doing everything we can to be friends. (If the biggest kid on the global block (China) suddenly wants to pick a fight then it does not hurt to have the second biggest kid (India) standing beside you.)

In the end it will not make any difference. War is inevitable. Countries run on oil and food and without oil there is no food. The conflict will likely start with minor skirmishes around offshore oilfields as one country tries to take control from the other. An oil platform offshore becomes a very easy acquisition for any country with a warship. The company losing the platform will appeal to its government. Depending on the location and value that government may decide to compensate the company to avoid a fight. Once a pattern of compensation is seen there will be no safe platforms. Eventually a fight will start and the odds of escalation into a war are 100%. It is only a matter of time and the Chinese general admitted it.

Regardless of who wins the global economy will suffer. Oil prices will soar and it is likely production capability will decrease. Oil platforms whether at sea or on shore will be seen as chess pieces in a global battle and some will be captured, some destroyed and some abandoned as not worth the risk. Doubtlessly they will not be abandoned intact. With Saddam Hussein and the Kuwait oil fields as an example any fleeing loser is probably going to do everything they can to prevent the other side from getting a functioning well.

Here are the key questions. If you knew for sure that there would be a war over oil with China as one of the aggressors what would you do? Is there any chance that oil prices would fall before or after this conflict? How can you protect yourself and your family?

The answer is to take action quickly. Because we live in a free enterprise country we are free to invest our money in companies that will benefit from the meteoric rise in oil prices as these events unfold. Not every company will rise. You have to be invested in the right ones.

Your challenge today is what to do to prepare yourself and your family for the coming crisis. It is your choice. Remain in the dark with your family at risk or profit from a once in a lifetime event. Actually this will be a once in a century event.