Era of cheap oil is over, says Anderson

Oil production capacity is expected to peak in the next few years as demand grows rapidly, especially as the world’s two most populous countries, China and India, catch up to middle-class Western lifestyles. But the suggestion by an Iranian oil executive in Perth this week that Australian prices could eventually hit $3 a litre has been downplayed. Analysts say sustained high prices for oil encourage further exploration and oil companies to bring other reserves into production.

SMH