The current oil price per barrel is $138. Before 2008 the highest price ever was just below $100. The cost of pumping up oil from the North Sea is said to be approx $25. The same cost for the Saudi Arabians is said to be approx 25 cents (!)…we are not talking about a cost plus situation here really….and we are not talking a normal demand / supply situation either to say the least.
The cost to ship a container from Shanghai (including the inland Chinese transportation costs) to the Eastern US seaboard has risen over 250% since 2000 when oil was $20 per barrel. (www.spendmatters.com)
Extremely high oil prices drive a number of industries to reevaluate their current consumption. This will generate new ideas and alternative methods.
Fossil fuels emissions include Green House Gases. Green House Gases generates global warming.
I say the higher the oil prices the better it is for the environment in the long run.
I hope the price per barrel will reach $200 already this year (as many analytics actually already is assuming)….and $300 per barrel by Q2 next year…
One of the bad things with these price levels on oil is of course that new oil fields, not yet profitable, all of a sudden seems to be interesting for investors….increasing the total world supply with gazillions of tons of more potential oil that can be pumped out on the market…
