Back in 2004 the government’s worst case scenarios had oil reaching $26 per barrel by 2025. This afternoon oil reached $125.98, the fifth day this week we had a record high price for oil. And we are not even halfway through 2008 yet.
Goldman Sachs recently pronounced that oil may soon reach $200 per barrel. I hope they are right. In fact the sooner the better, to my mind!
Why do I say that?
We need to get off our dependence on carbon as an energy source. The CO2 given off by burning oil for energy is poisoning the planet and wiping out animal and plant species at a hitherto unprecedented rate.
We have known this for quite some time now. Scientists were discussing Global Warming and climate change up to 40 years ago. The reason we have done very little to move off oil is that the alternatives were always too expensive. This also meant that raising money for research into renewable power sources was difficult and so alternative energy sources remained high cost.
However, now with oil at $126 per barrel and rising, renewables are starting to look very attractive. Suddenly money is pouring into companies who are trying to research and commercialize Green energy. This is a good thing! This will only continue as long as it is perceived to be profitable. In other words, as long as oil is expensive.
The worst thing that could happen right now for the future of the planet is if oil prices dropped. Roll on $200 per barrel, I say.