Alternative Profits Blog
Saudi Arabia Expects $150 Crude Oil in Three Years
Those folks who were bemoaning lower oil prices (because these hurt alt energy investments) can take heart from the following:"Saudi Arabia warned oil prices could spike to beyond the near $150 record high of 2008 within three years as it joined other energy leaders on Monday to call for more investment to boost production over the long term.
...Saudi Arabian Oil Minister Ali Naimi said the world was heading for a fresh spike after the current phase of faltering demand and lower prices, which he said reflected the economic downturn rather than being an indicator of things to come."
Crude oil prices are already inching towards $75 per barrel. And if the recession has indeed bottommed out and if the OPEC countries stick to their agenda of lower crude output every day, it's not difficult to see a $90 per barrel in the next couple of months. And oh well, $100 is only a few dollars from there.
Let's face it - predicting crude oil prices if almost becoming similar to predicting outcomes in a Russian Roulette, because we all know it is not only a question of demand and supply. There are other, external forces at work - OPEC cartel's funny decisions, speculative forces in the trading and futures market, governmental taxes on oil, and more. But the fact is, it's difficult to envision a future in which oil prices can be much less than say $50 per barrel. Pure economics simply wouldn't allow it.
So, whether it is going to be $150 or not in three years, I would be happy to bet that it will not be anything less than $80-90 per barrel. And that is a number at which many renewable energy sources start looking more promising.
posted by Ecacofonix at
9:01 PM
Sunday, June 14, 2009
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