Fight for oil

[Dover]

Fight for oil

05/11/2004 12:43

Global oil partition is on the rise. There is nothing left to share.

Nobody, aside from specialists, treats the news of drastically decreasing oil supplies seriously. There prevails a notion that today's oil supply will be enough for our generation. However, the fact that oil supplies are running low and that society is fiercely fighting to preserve the "black gold" appears to be rather obvious.

Famous Swiss energy expert, senator Rudolf Reksteiner comments that forecasts regarding growing oil prices are in fact being greatly understated. In reality, in a not so distant future, oil prices could reach $60-70 USD per barrel. Before the holidays, oil prices at New York stock exchange reached record high--$39,97 USD per barrel. According to experts, even when Hussein"s army invaded Kuwait oil has not been as expensive.

"Majority of analysts use incorrect method in their calculations," stated Rudolf Reksteiner to Tagblatt. "They overestimate capacities of existing oilfields and then are caught by surprise when those oilfields suddenly run dry." In reality, they simply do not want to see the problem and prefer to paint a completely different picture in their minds.

The Swiss expert is certain that oil prices will continue to grow and the process is inevitable. At the same time, the need for hydrocarbon fuel is increasing. It is noteworthy to mention that China and India today have joined the rest of the developed countries and are willing to pay almost any price for the "black gold".

Rudolf Reksteiner presents widely known but often forgettable data. For instance, oil export from the North sea will be reduced in half; oil supplies are practically totally exhausted there. Export of Mexican oil is also in decline. Whatever is left, goes right to the neighboring US...>


http://english.pravda.ru/main/18/89/357/12738_oil.html

[Kagemusha]

1. People are simply inured because of decades of underestimation

If there's overestimation now, it's because Wolf was cried too many times.

Besides, the Chinese economy is competing with the US and production has been carefully controlled. Hence higher prices. Don't forget the US dollar has depreciated, too!