Another spike in oil still on the horizon
A Marketwatch commentary on Sunday made the prediction that oil prices are in for another spike in coming years. An energy expert quoted in the piece states:
Absent large amounts of new drilling, new investment in enhanced recovery and new discoveries, the current worldwide oil output will decline by over 9% per year. And if it keeps going along this trend (there’s no reason why it won’t), the base of world oil output could conceivably dry up within seven-10 years.
Don’t get me wrong. The world won’t run out of oil in seven-10 years. That’s not how it works. It’s just that volumes of conventional oil are declining. The takeaway point is that the energy markets will tighten up, like a hangman’s noose around the collective neck of the oil-consuming world. We might not quite realize it, but when it comes to oil, we are all walking that long green mile.
As we’ve warned before, we cannot allow this current depression in oil prices to lull us back into another sense of complacency. Plus, even while the pain at the pump has diminished, the pain for the environment continues. Unfortunately, it often seems that only the former can spur any real change in our behavior.
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