The man who foresaw skyrocketing oil prices
"No one can restrain the price any more. For example, everyone thought that it would be OPEC who could manage demand. But that is now in the past.
Now it is really peak oil that is behind the wheel of the car. Peak oil is driving the rise in price and demand is not the real question. We are entering a new era, but we are only at the very beginning of it."
Repeated attacks on refineries in Iraq have added to market woes The idea behind "peak oil" is this. That, as the planet reaches the halfway point of consuming all its available oil, then a combination of bullish demand, slowing fields and insurmountable supply bottlenecks will create brutal price shocks. Almost certainly slicing the head clean off the world economy in the process.
This peak in oil supply will act as an economic guillotine. Yet the thread suspending the blade above our heads will be released without warning.
Politicians, producer countries, major oil companies and consumer states are not about to announce their own demise. It would not be good for business, or re-election, or both.