Oil prices continue to rise. Is Peak-Oil time coming?

The world economy could be in for a massive shock as oil prices continue to rise.


Oil strategist at Nomura, Michael Lo, estimates that oil prices could top $220-a-barrel - almost double today's high of $119 - if both Libya and Algeria halt production as a result of political unrest.
He told The Daily Telegraph: "We could be underestimating this as speculative activities were largely not present in 1990-1991."

The oil price increases, coupled with such warnings, spell danger for economic recovery, as inflation feeds through the supply chain.
RMI Petrol, the body which represents fuel retailers, said prices demanded by wholesalers have risen "an unprecedented" 3p-a-litre so far this week and that increase is set to feed into pump prices by the weekend.
As it stands, the average price for a litre of unleaded is 128.9p, with diesel 134.3p.

The cost of filling up has soared as a result of higher oil and taxes
It is estimated that Libya's daily output of 1.6 million barrels has already been cut by more than half because of the uncertainty there.
Three major foreign producers, Eni, BASF and Winthershall, have turned off the taps.
Together they produce 450,000 barrels a day.
One of the largest tribes in eastern Libya has threatened to cut off exports from the port of Banghazi unless the violence against pro-democracy protesters stops.
Another tribe, based south of the capital Tripoli, has also turned against Colonel Muammar Gaddafi's regime.
Saudi Arabia has said it could produce an extra four million barrels a day to make up any lost capacity and help keep prices stable.
But that has done nothing to stop the speculators and limit the sense of market panic.

The political unrest is already hitting oil deliveries
The biggest fear is that the turmoil could spread across the Middle East and North Africa, which together produce a third of the world's oil.
RMI Petrol chairman Brian Madderson told Sky News: "RMI Petrol predicts that rises will filter through to petrol forecourts over the next few weeks, leading to an estimated 5p per litre increase by April 1."
He has called for April's planned fuel duty increase to be frozen and for the Government to introduce structures so duty falls when oil prices rise.
Chancellor George Osborne has said he is considering a fuel duty stabliliser.

Energy Secretary Chris Huhne praises environmentally-friendly schemes in Bristol

SOME of Bristol's most innovative environmental projects were showcased during a visit by a top Government minister.

A car powered by gas from sewage and £9.4-million plans for a council- owned wind farm in Avonmouth were among the projects showed off to Energy and Climate Change minister Chris Huhne during his tour of the city yesterday.

Mr Huhne said: "Bristol's work to build new industries and jobs around green technologies offers us a glimpse into the future.

"As we face oil prices beyond $100 a barrel and the clearest evidence yet of the physical dangers to the UK of manmade climate change, low carbon is the sure-fire insurance policy with a big economic dividend.


"The city council's plans to build its own wind turbines will generate green electricity and new revenues for the local community."

The Liberal Democrat got behind the wheel of the Bio Bug, a modified Volkswagen Beetle which last year became the UK's first car to run on gas generated from sewage sludge.

Waste recycling company GENeco, which operates the sewage works in Kings Weston Lane, Avonmouth, creates the environmentally-friendly fuel by treating surplus gas.

Mr Huhne also took a look at a plot of council-owned land in Avonmouth which could soon become home to two large wind turbines. If the project takes off, the turbines could generate enough energy to earn the council £1.1 million a year supplying electricity to the National Grid.

Accompanied by city council leader Barbara Janke and councillors Gary Hopkins and Neil Harrison, the minister started his visit at Bristol Port, where he heard from the Bristol Port Company about its new deep-sea container port and plans for offshore renewable industries.

Mr Huhne added: "Bristol Port's plans around offshore wind offer a new future for an established facility. And the bio bug is British innovation at its best. These projects put Bristol ahead of many in seeing the economic and environmental payoffs of shifting to low carbon."

Bristol is one of nine areas receiving funding from the Department of Energy and Climate Change for projects.

Some of the cash will be used to assess all city houses to see whether solar panels can be fitted to them.

In addition, all the city's 34,000 street lights will be updated to be more energy efficient, ten biomass boilers will be fitted in schools and leisure centres and council buildings and schools will also have solar panels installed.

Ms Janke said: "It is very good news that the Energy Secretary is seeing for himself some of our renewable energy projects around the city.

"It is welcome he is taking time to meet with businesses – we have one of the largest environmental technologies sectors in the UK and we want to do all we can to encourage growth and job creation."