Sky high oil prices may be just around the corner
The recession has curbed demand for oil, pushing prices down sharply from their peak last summer. But without aggressive steps to improve energy efficiency, the world is "risking a second spike in oil prices" in the near future, according to a new study by consulting firm McKinsey & Co.Depending on just how badly the global economy falters, demand for energy could remain subdued for the next few years. But once growth resumes, an explosion in oil prices could come as soon as 2010.
More than 90 percent of the growth in demand for oil over the next decade will come from countries with developing economies such as China and India, McKinsey found. Middle Eastern nations will also see a big increase in demand as rising prices make them richer and ready access to plentiful oil supplies gives them little reason to conserve.
The U.S. government should drop import restrictions on ethanol made from Brazilian sugar, McKinsey suggested. Countries that provide deep subsidies to keep oil and gas affordable, such as Iran, Venezuela and Saudi Arabia, should end them to encourage their citizens to reduce waste.
All told, those measures could save between six to 11 million barrels of oil a day and keep growth in demand in line with producers' ability to increase supply, McKinsey said.
Without them, the world faces a return of the sky-high oil prices reached last summer, when $147-a-barrel crude pushed gasoline prices over $4 a gallon in many parts of the United States, according to the study.



























Reader Comments (Page 1 of 11)
3-24-2009 @ 3:45PM
bill said...
HERE WE GO AGAIN WITH THE OIL. IF THE PRICE RISES TO $100.00 THE USA IS DOOMED. YOU WILL SEE MORE JOB LOSE AND HIGHER FOOD BILLS SEEING FOOD HAS NOT GONE DOWN FROM THE LAST FUEL PUSH
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3-24-2009 @ 8:53PM
Larry said...
Yeh, you got that right, We have had enough. I think we need to get back to the days like back in pioneers day where they use the horse and buggy.
3-24-2009 @ 9:38PM
dave s said...
I happen to be thinking the same thing the last couple of days, if gas prices keep fluxuating, inflation is going to get way out of hand, as if it hasn't already!
3-24-2009 @ 4:03PM
Richard said...
Here's how to lower oil prices: 1)No more troops anywhere, but in the US; 2) no more foodstuffs sent anywhere, 3)no more medical aid sent anywhere, 4)send Bush and Obama to the Middle East
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3-24-2009 @ 4:56PM
john said...
Very good richard
3-24-2009 @ 6:05PM
M. King said...
I agree, but go a little further send the Tax Mongering House of Reps with them
3-24-2009 @ 10:02PM
ron05 said...
i think obambi to scared to go to the middle east.besides he would'nt be able to campaign for office over there.maybe obambi will by all the gas stations then dodd&barney frankfurter could get a part-time job.
3-24-2009 @ 4:03PM
art said...
WELL OF COURSE, JUST IN TIME FOR SUMMER!
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3-24-2009 @ 4:05PM
PETE said...
SAY GOODBYE TO THE ECONOMY IF OIL AND GAS PRICES KEEP GOING BACK UP.
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3-24-2009 @ 4:06PM
bonny said...
Good!...I hope oil goes to $200 per barrel..Do you think then they will get the message to start drilling here in the US??
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3-24-2009 @ 4:46PM
PJ said...
Well said. My new best friend. Drill American Oil Now!!!!
3-24-2009 @ 6:33PM
aesnead2 said...
I have a freind whose job it was to cap oil wells in Ca. so they couldn't pump more out and it is the same in other parts of the country. Back in the 70's they would not oil tankers unload their cargo untill gas went up to 75 cents a gallon they said ther was an oil sortage, you could only get 10 gals at a time untill the price got to where thy want it, and then there was more than before.
3-24-2009 @ 7:08PM
paul said...
No matter what kind of damage it does to our economy, Democrats will never agree to drill for our own oil. Americans have to vote them out for.
3-24-2009 @ 10:15PM
cannabal said...
It doesnt matter ,They will just ship it over there and back and claim it comes from there,
3-24-2009 @ 11:59PM
Laura said...
I agree,when are people going to realize when oil is doing well the economy is doing well. When oil bottoms the whole market follows.
3-25-2009 @ 1:26AM
bob said...
we do not have large amounts of oil,they have been handing people a crock of bull. our oil has salittafied , I know this is spelled wrong its as close as i could get,with out looking it up, to coal,thats what we have a whole lot of.
3-28-2009 @ 3:17PM
Facingfacts2009 said...
Tell the US automakers about CNG. It's green enough to cook a burger on, we have lots of it, it is less expensive than gasoline and we don't need any from the Arabs. Isn't that enough to get anybody's attention? The automakers could be back at work in 3-6 months and the US natural gas supplies will get us through the transition stage to solar, wind, or whatever. You also get hydrogen from natural gas. Wake up America. We have more natural gas than any country in the world. You could put a put the US Energy workers back to work. What is going on? Does this make too much sense for this government?
3-24-2009 @ 4:12PM
bob haber said...
I am sick of the middle east having us over a barrel.
These people are trillionares because of us. You would
think that they are rich enough. Everytime the price of
oil is low. They talk about cutting production. We have to phase them out
Bob
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3-25-2009 @ 12:21AM
Joseph said...
I agree. We must become energy independent not just with oil but using nuclear and heck in the area's where volcanic activity is tap geothermal energy. And drill our own oil. but sad to say we have too many tree huggers in Washington that will not drill our own oil but instead send money for oil to countries that are using it to kill our own troops
3-24-2009 @ 4:12PM
DALTON COOPER said...
Just a couple of days ago there was an article stating that oil would be between 40 and 55 dollars per barrel for the next few months or years as the China market was in a slump. Now this article. Would you pay me to write an article about what I think that it shall do? I have a direct line to the guy who controls the price of oil and he will tell me what is going to happen if I will slip him a few dollars.
YOU PRINT ANYTHING!!!!!!!!!!!!!!!!!!!!!!!
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