Matt Simmons Foresees $250 Oil

Iran's official state news agency quotes interview with Simmons in January 2006 issue of German-based Capital economic magazine

Published: 05-Jan-2006

The former energy advisor of US President George W Bush, Matthew Simmons, predicts oil prices could reach as much as 250 US dollars per barrel over the coming years.

"We have to expect an oil price between 200 and 250 dollars per barrel," Simmons was quoted as saying on Tuesday in the January issue of the German-based Capital economic magazine.

He cited an imminent shortage of oil supply and a growing global demand, especially in China and India, for the sharp rise in oil prices.


Visits to China, India, Malaysia and Pakistan are significant because the trip spells out the Saudi Kingdom's Look East policy, representing a new reorientation in its foreign policy that was heavily tilted toward the West.

The worst two scenarios suggest a drastic decline in output to 875,000 barrels a day by the end of 2007 and to just 520,000 a day by the end of 2008.

Bush said he envisioned a future in which a plug-in hybrid car could drive 40 miles on a lithium-ion battery, then stop at a filling station for ethanol, a fuel usually made from corn, similar to HyMotion Prius pictured below.


blog comments powered by Disqus