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$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
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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.

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 42 percent since August. Overnight, the national average price of a gallon of gas...
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)
In this undated file photo provided by Mexico's national oil company, Pemex, on June 13, 2006, an offshore oil installation is seen in the gulf of Mexico near the coast of Campeche, Mexico. (AP Photo/Pemex)
In this undated file photo provided by Mexico's national oil company, Pemex, on June 13, 2006, an offshore oil installation is seen in the gulf of Mexico near the coast of Campeche, Mexico. (AP Photo/Pemex)   (Associated Press)
A bicyclist pedals by the sign displaying the prices of the grades of gasoline available at a service station in Denver on Thursday, Nov. 8, 2007. Gasoline prices rose further above $3 a gallon at the pump in response to crude prices, which have soared 42 percent since August. Overnight,...
A bicyclist pedals by the sign displaying the prices of the grades of gasoline available at a service station in Denver on Thursday, Nov. 8, 2007. Gasoline prices rose further above $3 a gallon at the...   (Associated Press)
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