More evidence Obama wrong about oil pricing
Oil prices will fall as much as 30 percent by 2016 because of rising production and fuel efficient vehicles, according to a prediction from forecasting group Kiplinger.The law of supply and demand still holds. We can drill our way out of high prices if we are only willing to do so. We would get there much quicker if Obama would quit trying to outsource our enemy sector to countries that do not have our interest at heart. Our production is going to increase despite Obama, and despite his misguided global warming policies. All he is accomplishing is increasing our exports of coal.
The group projected that U.S. benchmark crude will cost $65 to $75 per barrel by 2016, compared with Tuesday’s closing price of $95.32 on the New York Mercantile Exchange.
Other organizations, including investment banks and and research firms, also have forecast oil price declines, though other projections have been around $85 as a long-term price.
Kiplinger said rising U.S. production, coupled with lower U.S. consumption of petroleum products would push prices down.
“The U.S. is playing a major role in the shift,” Kiplinger said in its weekly letter published Friday. “Domestic oil use is down 11% from its peak in 2005, thanks to more gas-sipping cars and trucks. Meanwhile, output is up 30% since 2008, the legacy of tremendous gains in drilling technology that have revitalized the U.S. as a major producer. The net effect is huge, equal to the infusion of 4 million barrels of newfound oil supplies a day.”
The change would come as businesses large and small are increasingly turning to natural gas, which is cheap in the United States as a substitute for petroleum products, Kiplinger said.