$100-a-barrel oil to be the new normal

Long-term Trend Watch:  CIBC economist Jeff Rubin predicts $100-a-barrel oil to become the new normal.  The article doesn’t mention Peak Oil by name, but the analysis is the same.  Oil production from traditional sources like Mexico, Kuwait and Russia are declining.  Candadian tar sands oil might temporarily fill the gap, but the long term trend in production is down.  Nuclear and biofuels will be needed to fill the gap.

I have read Hubbert’s Peak by Kenneth Deffeyes about the Peak Oil theory and find the argument pretty compelling.  Read more and decide for yourself.  In the meantime, its a good personal hedge to own some oil stocks.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.