Triple-digit Oil Is Inevitable

Crude oil, at least the cheap and easy to get to stuff, is dwindling. What's left are things like oil sands that are costly to refine, sour crude that also requires additional refining, deep-water drilling and other less than desirable and more difficult methods. Most of all these things cost more money and that cost is passed right along to you and me.

Published: 11-Jul-2006

NEW YORK (MarketWatch) -- Oil at $100 a barrel? Oh yes, and like most milestones, this is one that you are not likely to forget.

As we stand on the precipice of such lofty prices, I understand that there are those who believe that $100 oil is pure nonsense.

We've been watching oil very closely. At $40 we said crude would hit $60. At $50 we said it would hit $75 within a year. Some scoffed and called me a fear monger. Now that we're at $75, I'm telling you that under the right conditions oil could not only hit, but sustain a $95 to $110 price per barrel by the end of the year. I say it's not only likely, but almost inevitable within 12 months.


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