Peak oil has been a matter of discussion in recent times. Christophe de Margerie, the Chief Executive of Total in France, says the world will never produce 100 mn barrels per day of oil; we currently produce around 85 mn barrels per day of oil. In UK, it is widely understood by the general public that the U.K. is going to be a net importer of energy from now on. Peak oil is a reality. It may take a generation for all the effects to be played out but they will be played out.
The U.S. economy is also interdependent and in many ways dependent. Especially on oil. In a week where the Nymex price for a barrel of crude reached $111 this really should be apparent. Yet this does not seem to have deterred the recklessness driving the U.S. fiscal outlook.
Remember that oil prices do not knock through into economies straight away, the impact is delayed, maybe as much as 18 months in some cases.
In talking about the market in crude oil we often looks for items, events, and structures that repeat themselves. We pin some kind of faith on them because we are unable to see the future with any real clarity. For regular readers of this column, you will realise that this is the start of an explanation as to why we predicted crude oil would be $66.60 at Christmas.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances