A rude bet on crude prices - $100 before $20,
Western oil majors feel the political pinch,
A non-cow dung alternative fuel and plenty more...
Eric Fry, offering a wild guess about the oil market…
As the price of crude oil continues its death spiral, forward-looking investors have every reason to scratch their heads in amazement. The oil market seems to be pricing in a global economic condition that would be even more dire than a second Great Depression. $35 oil seems to imply that mankind will resume its reliance on ancient energy sources like whale oil, tallow and cow dung.
Maybe so…but we doubt it.
Late last year, the International Energy Agency (IEA) released its World Energy Outlook 2008, which presents a thorough field-by-field analysis of production trends at the world's 800 largest oil fields. This comprehensive study suggests that the oil price is much more likely to rise than fall over the next few years.
The IEA stops short of promoting that "Peak Oil" theory that the planet is running out of hydrocarbons. But the Agency does point out that output from the world's major oil fields is declining much faster than previously believed. More >>>