End of cheap oil
Oct. 3rd, 2007 by AlThe word “cheap oil” seems like a cruel joke now but not months ago when oil was trading around $60 a barrel.
Experts cited that oil prices will rise above $85 by end of 2007 and more than $100 a barrel by next year.People seem to talk about oil price by hearsay from their friends and gas attendents but no one really got a clear picture, if the analyst got trouble figuring it out, what makes you think that the man on the street know any better.
A few points that bystanders make when talking about oil markets almost got me fooled like “Damn, it’s those big oil companies trying to push prices up” but if companies like Exxon control less than 10% of the production, where’s the logic?
And when I tried to talk about peak oil , people normally give me a weird look like I’m from another planet.It shows how deluded men has come to be and I’m not surprised.
Here’s the deal: Peak oil is when global oil production began to peak and then decline.
The current oil production is 85 million barrels per day from depleting oilfields & producers are already struggling to maintain this figure.What if we consume more than 85 million barrels in the near future whereas production figures remain the same?
IEA(International energy Agency) suggest that the supply and demand gap continue to widen but the public remains in Oz land thinking that the market will resolve the problem,how does it resolve when we can neither recycle or grow oil, nobody’s saying.
If you think 80USd a barrel is expensive, try 300USD by the year 2015 when EIA estimates the world will be consuming 97 million barrels per day.So nowadays sadly 80USD a barrel is considered cheap, please enjoy while it lasts
No comments yet.