$100 a Barrel Oil Triggers Crisis

New energy shock caused by runaway demand
By Peter Fearon,  Newser Staff
Posted Nov 9, 2007 11:11 AM CST
A trader at the New York Mercantile Exchange deals crude oil futures on Wednesday, Nov. 7, 2007. Gasoline prices rose further above $3 a gallon at the pump in response to crude prices, which have soared...   (Associated Press)
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(Newser) – The planet is headed for the third major energy crisis in a generation, but this one may be more serious and last longer than the others, the New York Times reports. Energy crises in the '70s and '80s were triggered by interruptions in supply from the Middle East. This time around, the trigger is massive growth in global demand, particularly in developing countries.

China, India, and smaller countries are driving the unprecedented demand with rampant development and urbanization, but how sustainable that growth will prove to be is unclear. The boom may not last if oil prices, headed for $100 a barrel, run wild. “These prices are too high and will end up hurting everybody, producers and consumers alike,” says one economist.