The whole point of economics is studying the allocation of scarce resources. Individual economists might not believe in peak oil, but to expand this idea to say

The whole point of economics is studying the allocation of scarce resources. Individual economists might not believe in peak oil, but to expand this idea to say that neoclassical or chicago school economic models ignore the physical constraints of the universe is hyperbole at best. Of course I doubt many economic models take the life expectancy of the sun into account; but to say that neo-classical models can't account for running out of oil is frankly ridiculous. As oil gets more expensive other means of energy production (nuclear, solar) become more attractive, and/or the cost of energy goes up. Never mind including technological progress as an "input" into your model.