peak oil

photo: Getty Images

Subsidies may be distorting the true price of oil in the United States, and the price of crude continues to rise unchecked but that won’t slow global demand for oil over the next few years—even if demand in the developing world is contracting—according to the International Energy Agency.

The Paris-based organization predicts that demand is expected to grow by 1.6% per year between 2008 and 2013, while non-Opec supply will increase at only 0.5% per year. This increased reliance on Opec means that oil prices are likely to remain at record levels.

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Time to buy a bike: Gasoline prices in North America will soar over the next four years to $7.00, causing a massive jolt to the continent's manufacturing base not seen since the oil shocks of the 1970s, a leading economist is warning. Jeff Rubin of CIBC World Markets was laughed at three years ago when he predicted $ 100 per barrel oil, and now thinks it will climb to $225 in four years. (Houston Chronicle quotes him as saying gas will cost $10 per gallon) From the National Post:

"Stripping out natural gas liquids, oil production has not grown for over two years, which certainly goes a long way to explaining why oil prices have doubled over that period," Rubin said. "It is increasingly...

From a great graphic by Bill Marsh of the New York Times

The New York Times writes about the factors causing the rise in the price of oil, which hit $ 116 per barrel this week. Jad Mouawad hits all the usual suspects, such as the weak dollar, worries about terrorism (?) and demand, saying "Producers are struggling to pump as much as they can to quench the thirst not only of the developed world, but fast-growing developing nations like China and India, the two most populous countries." However he then goes on to say "The number...