Some unsettling news posted at AlJazeera:
A report prepared by energy economists at the French investment bank Ixis-CIB has warned crude oil prices could touch $380 a barrel by 2015.
Analysts Patrick Artus and Moncef Kaabi said in the next 10 years demand for oil will outstrip supply by around 8 million barrels per day (mbpd).
“If one takes into account the level of previous oil shocks such as in the 1970′s, we don’t think a price level of $380 per barrel is out of the question,” they said.
The analysts argued that the shortfall in energy needs would not be made up by alternatives as they were not developed as yet. “Thus the world will still need to rely upon traditional fossil fuels,” their report said.
If this prediction comes into fruition the future looks very bleak indeed. Of course it could be golden times for the Middle East, if it doens’t get dragged into the world recession that would inevitably follow. If you want to make comparisons, oil is now trading for about $53 a barrel….
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