This week the price of oil passed the all-time, inflation-adjusted high of $103.76 per barrel, set in April 1980. The per-barrel price of oil is now three times what it was four years ago, and it seems that U.S. drivers–who enjoyed discount petroleum pricing for the last few decades–are beginning to react to the reality of limited fossil fuel resources.
Over the past month and a half, the nation’s gasoline consumption has fallen by an average 1.1% from 2007 levels, according to weekly government data.
The Wall Street journal reported it is the most sustained drop in demand over the last 16 years, except for declines following Hurricane Katrina in 2005.
The Energy Information Agency (EIA) has recalculated earlier projections, saying that net imports of crude oil and refined products will be about 2.4 million barrels per day lower in 2030 than previously expected–a relatively small change, but an important step in the right direction.
Additionally, the EIA reported that world crude oil production fell from a peak of 73.8 million barrels per day in 2005 to 73.2 million barrels per day in the first ten months of 2007.
The CEO of Royal Dutch Shell and the U.S. industry-dominated National Petroleum Council reportedly have both stated that supply constraints are likely to put continued pressure on world oil markets in the years ahead.
Certainly the motivation is now in place to drive politicians on both sides of the aisle to pass comprehensive and strong energy legislation to quickly bring renewable energy to scale and abandon the notion that domestic oil exploration can cure our energy ills.
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