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Oil Prices To Double By 2022, Imf Paper Warns


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Oil prices to double by 2022, IMF paper warns

Oil prices could double over the next decade with sweeping implications for the global economy, according to a report commissioned by the International Monetary Fund.


As oil prices remain at historically high levels of around $110 (£68) a barrel, the working paper warned a combination of rising demand and constrained supply could have major consequences.

"Our prediction of small further increases in world oil production comes at the expense of a near doubling, permanently, of real oil prices over the coming decade," the report's authors concluded.

"This is uncharted territory for the world economy, which has never experienced such prices for more than a few months."

They said that research suggested energy accounted for up to 50pc of overall gross domestic product, meaning "the implications of lower oil output growth for GDP could be very large."

Persistently high oil prices are already threatening the global economic recovery according to a director of the International Energy Agency.

Maria van der Hoeven said that although prices had eased somewhat in recent weeks, the threat of heightened political tension over Iran, limited spare production capacity, and unplanned supply outages remained.

"Prices remain very high," she told a conference in Australia. "High prices pose a real threat to the economic recovery."

Brent crude oil spiked to above $120 a barrel in the early part of 2012 but was trading yesterday at about $110 a barrel. That was the lowest since January, but still very high by historical standards.


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Meanwhile, ecozealots across the country try to shut down our oil industry (which happens to be one of the few good ones we have at the moment).

Which is ironic, given that high prices will make things like solar power viable economically based on market conditions, with no need to put in subsidies or any sort of government program, at all.

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Try to solve it ont he supply side all you want - you can't. There are more middle class Chinese than all americans, and they want gas too. And that's just China. No tar sands or other new oil discoveries will change this.

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The prices for supposed demand for oil certainly isn't coming from the west. In fact in the big ol' USA demand for crude was very low.

The issue exacerbating high cost is fiat currency, the fact that the US dollar is losing value rapidly, the loonie is as well but not at such a frenetic pace.

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F*** it.

I'll still pay for it. I love driving and I love my car.

But on a side note, the only reason I support electric cars is so the demand is lowered meaning the gas prices get lowered.

I just think its ridiculous for having the price so high, greedy arses. Oil won't run out anytime soon in our lifetime or in the future after that.

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