Oil peak will surely damage businesses and bring out detriments to all who depends on it. Oil price is a real shocker!
The historical upward trend in oil price has inflicted pains, headaches and economic worries on every consumers. After some decades have passed, since the conception of the oil industry in Middle East, cheap oil is a history. But what makes it unbearable today? Last year's oil price was only at $65 per barrel, today, it is more than a double, making it a new record of $165 per barrel and also expected to escalate at $200.
Pessimists believe that production has passed its peak. Optimists say it may be 20 years or so away – which would give us some time to prepare – but are now muted. Last week the hitherto optimistic International Energy Agency admitted that it may have overestimated future capacity. Chris Skrebowski, editor of 'Petroleum Review' and once an optimist himself, believes that the world is now in "the foothills of peak oil". Prices may ease a bit over the next few years, but then the real crunch will come. The price then? "Pick a number!"
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