[cube]

There seems to be much disagreement as to how high energy prices can go. On one hand there's the Mad Max scenario where a barrel of crude is worth more then a man's life and on the other end there are those that argue a barrel of oil can never hit $100.

I like to state that energy is not a "regular" commodity. For example if you walked into a grocery store and noticed the price of apples were hypothetically speaking 5 times more expensive you can simply choose to not buy apples....which I bet that's what almost everybody would do. Because consumers can choose not to buy apples it's price can never spike that high.

Energy is different. There is no choice unless one wishes to go back to the middle ages. Therefore the maximum price consumers will be willing to pay for energy will equal the amount someone is willing to pay to avoid being pushed back to the dark ages.

It wasn't too long ago that natural gas was 1/5th it's current cost. I believe energy prices can go even higher much to the chagrin of "Flat Earth" economists who once argued that $50 / barrel oil was "impossible". Some have argued no economist "worth his salt" would entertain $100/barrel oil. The world simply cannot afford it some would say. I disagree. Granted the 3rd world can't aford it but the 1st world definitely can. So long as there is somebody with money who's willing to outbid someone else to have the priveledge of "modern conviences" fossil fuels can rise in price.

How high can a barrel of gasoline go for in my opinion? It can be worth more then a man's life if we ever get to that point.

[jato]

$this->bbcode_second_pass_quote('', 'T')here seems to be much disagreement as to how high energy prices can go. On one hand there's the Mad Max scenario where a barrel of crude is worth more then a man's life and on the other end there are those that argue a barrel of oil can never hit $100.

[mekrob]

If there is another big disruption like what happened with Katrina, prices would probably hit 100 for a barrel. The first time around, people get nervous and are more likely to just drive less. But the second time prices reach $70, people will be more comfortable with the high prices (constantly at 60 and people seem to carry on like usual). So oil prices would have to go higher than 70 if there were to be a major supply disruption like Katrina.

[toonz]

$this->bbcode_second_pass_quote('cube', 'O')n one hand there's the Mad Max scenario where a barrel of crude is worth more then a man's life and on the other end there are those that argue a barrel of oil can never hit $100.