Why? Reason No. 1 is, to bluntly use the phrase, Peak Oil related. When Mexico’s huge Cantarell field has dropped 300,000 barrels a day, this year alone, a 10 percent drop, you know we’re in trouble.
Mexico could be a net oil importer, and in just five years. Kiss 1.5 million barrels a day sent to us good-bye.
And, as I’ve blogged here earlier this month, Russian oil production has been flat for more than six months. The Saudis can’t (let’s drop the “won’t” open the taps, at least not much more.)
I expect oil to easily hit $130/bbl by the peak of the summer driving season.
And, this is yet the latest kink in newspaper business troubles, too. I’ll probably have a post specifically about that later this week.
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