Once again, Americans can fill their gas tanks for around $20. While this might be a good feeling, don’t expect it to last.
With oil trading at $37.28 per barrel, down 75% since its $147.27 peak in July, it’s tempting to believe that, with the world in recession and emerging economies on ice (at least for the foreseeable future), oil consumption should remain cheap. And though the price of black gold continues to test multi-year bottoms, the leading policy experts in the field say the ride down should remain a relatively short one.
Specifically, the Paris-based International Energy Association, which advises on energy policy for 28 nations, sees that not only should energy use spike once again, but that prices should skyrocket in the long to mid-term.
The IEA sees global demand for oil rising 1% per year from 85 million barrels a day in 2007 to 106 million barrels in 2030. As a result of this increased demand, the IEA projects crude oil import prices to average $100 per barrel in 2007 dollars, over the period of 2008 through 2015, and then to rise north of $120 in 2030.
Click here to read the full article…
