Oilwatch Monthly January 2010

Most oil price predictions by large analyst firms for 2010 lie in the range of 70 to 90 dollars per barrel. An expectation that the price level between 70 and 85 dollars since November while continue. After the price spike two years ago our collective minds refer to this 80 dollar per barrel level as normal, while only ten years ago it would have been uncalled for. An older example can be found in a scientific paper published back in 1987 in Energy Policy written by M.B. Morrison.

Examining the lower and upper bounds of oil using a typical Hotelling extraction model from economics. Concluding that