Oil Prices Will Rise Again!
Oil prices hit record highs back in 2008, and many are expecting the same result in 2011. However, there has been much discussion about whether or not it will actually happen. We are in cross roads for our energy future here in the U.S., and this year could be very telling about the future. We think that oil prices will continue to rise, and Timothy Siegal has been a consistent believer of this too. Take a look at his supporting ideas.
"The United States, with about 4.5% of the world population consumes about 22.5% of the world’s petroleum. I propose that over the next decade that share will shrink to about 15%. Where will it go?? China, with about 19% of the world population and currently about a 10% share of consumption could move up to 15%. Why not?? China is producing 20 million automobiles a year, so it is just a matter of time before they have more autos on the road than we do. And their auto production is increasing. On a per capita basis that would still be less than a quarter of US consumption. So if the top quarter of Chinese society used petroleum at about 3/8ths of the American rate, and the middle half used it at a quarter of the rate, that would equal 7/8ths of US consumption, leaving just a 1/8 share for the rest. Is that so hard to imagine?? Not to me. India, with about 17% of world population and a current 3.6% share of world oil consumption might add a percent or two. India has a growing population and a growing economy. "
Read the entire article here: http://blogs.forbes.com/timothysiegel/2011/05/21/why-oil-prices-rose-in-the-spring-of-2008-and-will-rise-again/