Bummed by high gas prices? No worries, mate, at least in the long term according to "one of the energy industry's top consultancies":
An oil glut is coming. That's right, a glut, way too much oil -- and the bold prediction is being made by one of the energy industry's top consultancies.
Even more bold is the prediction's timing, just as the benchmark price of oil is on the verge of cracking $60 (U.S.) a barrel and futures contracts suggest oil will remain higher than $55 for the rest of the decade.
Cambridge Energy Research Associates Inc., based near Boston, is skeptical, and yesterday released highlights of a report that concludes the world's capacity to produce oil will likely easily exceed the world's voracious demand for the product that fuels cars, ships and planes.
Increasing oil production capacity "will comfortably meet volatile and expanding demand in the next five years and beyond," Peter Jackson and Robert Esser, the authors of the report, write in their introduction.
Yes, I'm sure you're skeptical, but that's why they're the high-priced consultants and you're not. I mean, folks like this have a track record for this sort of stuff.
Gee, I hope they're right. Why do I fear that they're not? Oh, right...Hubbert's peak. Why do economists have such a hard time wrapping their minds around the idea that the Earth has finite resources?
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