ANOTHER CRUDE SHOCK

It seems another crude shock is on the way, if legendary oil billionaire T Boone Pickens is to be believed. He says that the global supply of crude oil is permanently stuck at 85 m barrels per day. However, demand will keep rising over the long term. The result, Boone Pickens believes crude oil prices will keep rising higher, possibly reaching US$ 300 per barrel.

He says "Look at the history, it proves oil prices will go up." He also offers a solution. Right now, switching power generation and transportation to natural gas instead of crude oil will help take off some of the demand. Over the long term, increased focus on renewable sources like wind and solar power will help.
There simply haven't been any major oil field discoveries in the last several years and it is only a matter of time before the average Chinese and the average Indian starts consuming much more per capita than he does now. The long term trend for crude oil prices is definitely upwards. This opinion is shared by some eminent investors, including Warren Buffett and Jim Rogers. Given the amount of concern that crude price in the range of US$ 147 per barrel generated last year, the amount of financial havoc prices in the range US$ 300 per barrel will create can well be imagined.