Oil Predicted to go to $120 per barrel, Global Perspectives projects higher!
The world is demanding and consuming 88.5 million barrels of oil per day.
We are essentially at peak production ability. Experts tell us that it is not plausible that the world can produce more than 89 to 90 million barrels per day.
Projections are that within 90 to 120 days the world will require 90 million barrels of oil per day. China's demand is up and India's economy is expanding with additional demand. As the USA recovery continues, the demand for oil will continue.
Furthermore, as George Soros said May 31st, "Many investors and nations are beginning to use oil as a currency, or a refuge for investment, instead of currencies. Oil has become an international currency" creating an artificial demand.
"The price of oil, must go up" Boone Pickens said May 31, 2011. He is projecting $120 per barrel oil within 90 days. At http://www.bootheglobalperspectives.com, we believe that the price of oil will go higher. That is because Boone Pickens looks at it from a pragmatic oil man perspective, this is what we make and this is what we demand. Soros sees a broader picture, and that is the other demand for oil as a new global currency.
The United States now uses 20 million barrels of oil per day, 1/4 of the world's oil production.
He suggests that as inexpensive as natural gas is, and with an abundance of natural gas, we can essentially eliminate diesel imports from Saudia Arabia, by converting trucks to natural gas. It is a domestic product. And why should the USA spend so much money on imports. Consider, if we import only half of what we use, then 10,000,000 x $100 (price per barrel) =$1,000,000,000 per day. A billion per day?Is that correct. 30 billion per month. $365 billion per year.Are we sending that much to other nations? It would seem, if we have abundant natural gas, that it is logical, and good economic sense to convert our truck fleet (and a big part of our auto fleet) over to natural gas.
Certainly we could use that money at home to support domestic industry, create jobs, and to lower our balance of trade deficit.
With wind, solar and other renewables, we can expand the role of renewable energy to power our homes and commercial buildings. Natural gas can expand, and provide more energy for transportation.