WASHINGTON - While the recent flurry of record oil prices may be temporary, government analysts said Thursday that $30-a-barrel oil should be expected for decades to come.
Crude is likely to cost about $35 a barrel in 2025, an increase that is nearly a third higher than predicted a few years ago, according to a long-term energy outlook report issued by the federal Energy Information Administration.
Guy Caruso, the agency's director, acknowledged that long-term predictions for energy prices 20 years into the future are difficult and subject to change should there be unexpected global events that might affect oil supply or demand.
The agency's forecast is largely dependent on current assumptions about future oil production and expected economic growth which will determine the intensity of demand for oil and other energy sources.
The forecasts estimate that world oil production will grow from about 80 million barrels a day to 120 million barrels a day in 2025.
Let's see whats wrong with this. In 2025 he estimates a barrel will be $35 when in the last 4 months it has been $40+. I tell you things just don't add up.
Report Expects High Oil Prices for Decades