Oil Hits $100 a Barrel for the First Time
Well, we’ve reached a milestone in our oil addiction; the price of a barrel of crude oil closed above $100 for the first time last week. Our consumption, though, is steady-eddy as always. It seems that Americans are now accustomed to $3 a gallon gas. How much longer can this trend continue though?
Who would have guessed back in 2002, when crude was hovering in the $20 range, that we would see a five-fold increase in only 6 years? I believe this huge run-up is testimony to the fact that the world continues to demand more and more oil yet supply is struggling to keep pace. Just look at China and India. Those two countries continue to get thirstier, plus America’s unbelievable amount of energy demand hasn’t relented.
We’ve witnessed the enormous growth of the environmentally friendly/energy conservation movement over the past several years. We’ve got a long ways to go though, and I hope we have the time to do it. At present rates of demand, I’m doubtful we could operate with oil at $200 a barrel. Energy prices have been on a long-term upward trend for a while now; will it continue? If it does, where is the breaking point? I sure hope we don’t have to experience it. We need to act faster.
February 27th, 2008 at 9:00 pm
I found your site on google blog search and read a few of your other posts. Keep up the good work. Just added your RSS feed to my feed reader. Look forward to reading more from you.
Karen Halls
March 2nd, 2008 at 9:56 am
Oil will never go below $85 again. In 2010 oil will be over $250 a barrel and gas will be $10 a gallon. Even though reserves are rising which should make oil prices drop the fact they don’t drop in price is because the political tensions are rising. With that you will either buy a hybrid which will still be expensive to operate or ride your bike or take the public transit. There are ways to reduce your fuel cost.
March 3rd, 2008 at 4:04 pm
Well let’s hope your wrong Ron. At $250 a barrel, transportation will be the least of our worries; it’ll be hard enough to feed ourselves and heat our houses.
I don’t think political tensions alone will drive prices that high. They are definitely a catalyst in the high prices today, but I don’t think anything but peak oil or a severe, severe shortage of any cause would cause prices to jump that high. Either way, though, at the rate we are going it can’t be thrown out.