In the wake of oil’s recent (Friday 6/6/08) $11.33 surge, when it hit a record high of $139.12 before retreating a little, America’s leading auto industry e$139.12 before retreating a little, America’s leading auto industry expert, David Cole, the head of the Center for Automotive Research, fears the price of oil may soon plummet.
David Cole says, “We have seen this before. In the late 1970s the price ran up to previously unimaginable heights and once it reached a peak it came crashing down, way below the levels before prices started to rise.”
Even as many analysts predict oil reaching $150/barrel, many also agree that as fast as prices rose, they could soon come crashing down.
Tom Kloza, the chief oil analyst with the Oil Price Information Service, believes such a move could come, but seems a ways off. Kloza says, “I think that prices could certainly give up chunks of their gains.”
While industries from aviation to package shipping, to transport and beyond are calling for cheaper oil, David Cole sees nearly as much economic disruption in a price drop as in the recent price run up, noting that, “in the late ‘70s all the investment in alternative fuel technology cease and that led the auto industry to the mess it is in today.”
From an economic perspective the price run up in energy (oil and gas) are an economic bomb that has to be dealt with.
A collapse in oil prices of some kind would certainly be a welcome relief to the economy.
David Cole says, “We have seen this before. In the late 1970s the price ran up to previously unimaginable heights and once it reached a peak it came crashing down, way below the levels before prices started to rise.”
Even as many analysts predict oil reaching $150/barrel, many also agree that as fast as prices rose, they could soon come crashing down.
Tom Kloza, the chief oil analyst with the Oil Price Information Service, believes such a move could come, but seems a ways off. Kloza says, “I think that prices could certainly give up chunks of their gains.”
While industries from aviation to package shipping, to transport and beyond are calling for cheaper oil, David Cole sees nearly as much economic disruption in a price drop as in the recent price run up, noting that, “in the late ‘70s all the investment in alternative fuel technology cease and that led the auto industry to the mess it is in today.”
From an economic perspective the price run up in energy (oil and gas) are an economic bomb that has to be dealt with.
A collapse in oil prices of some kind would certainly be a welcome relief to the economy.
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U.S. oil analysts see 55 BILLION barrels of oil AT HAND NOW within the continental United States! That counts some 20 BILLION barrels in shale oil, another 31 BILLION barrels in oil on federal lands, like ANWR and another 4 BILLION barrels from Montana's Bakken formation. And that's just currently known supplies! It's more than likely that there's far more shale oil and oil sands available within the United States, to say nothing of the HUGE supplies we know just off our own coasts. Consider that Canada has more oil available in oil sansds than all of Saudi Arabia has oil. That's why Alberta is currently booming...and that's why the price of oil may be set to come down, in light of all this available supply.
