Oil Companies Still Reckon On $25 Per Barrel

“We ran out of $2 oil in 1973,” said Henry Groppe of Groppe Long and Littel, at 79 the oldest active oil consultant (and one of the most respected) in the business. “Then we ran out of $8 oil, then $15 oil. Now we’re running out of $40 oil.” It’s a different way of looking at what is happening to the price of oil, and a much more useful one.

Last week the price of a barrel of oil reached $65. Oil has doubled in price in the past 18 months, and oil industry experts freely speculate that the price might hit $80, even $100 a barrel before year’s end, hugely depressing world economic growth.

Embassy