Oil Shock

by Darren

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Oil shock has hit the world, according to leading energy experts. With crude oil trading at $141 a barrel, it seems people worldwide are becoming slowly aware of the enormity of the crisis. Since oil is at the center of business worldwide, higher prices on oil are causing price increases throughout disparate industries.

Against this backdrop, energy experts have gathered at the 19th annual World Petroleum Conference. One of the key issues being discussed is the high cost of gas, and how consumers and businesses will deal with it.

Andris Piebalgs addresses the crowd at the World Petroleum Conference

“We are clearly in the third oil price shock,” suggested IEA chief Nobuko Tanaka. He said the oil shock was similar to what happened in the 1970s and 1980s. This time, though, he didn’t think there was a quick fix for the problem.

“Those price peaks forced consumers into saving oil and oil companies to look for new wells,” continued Tanaka “But now the biggest energy savings have been made and … the easy oil outside of a few countries has been found.”


Video of a discussion on just what’s causing the high price of oil

Oil industry and public officials also gave dire warnings about where they thought prices were heading. Some called for global initiatives to tackle the issue.

“We need a global effort to improve our resilience,” EU Energy Commissioner Adris Piebalgs.

“If the EU with 27 countries … could agree on common energy policies, I believe we can do it in the global forum,” he said.

Gas prices in the U.S. were $2.96 per gallon one year ago today and are $4.09 today. That’s hitting people and companies right where they can least afford it. Consumer confidence is down and prices are up. This is never a good combination for the economy.

It certainly seems as if alternative energy will continue to attract more investment capital in the coming months. With enough capital invested, a major breakthrough that would introduce alternative transport energy cars to the masses could happen. That is one investment opportunity that’s definitely worth exploring these days.

Right now, oil shock has gripped the world.

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