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Saudi Oil Close To Peak - So What?. The cost of oil has risen by about 50% in the last year. This time in 2004 the cost per barrel of oil was about $35, now it's about $53. The reason why oil prices have spiked is because of many things: winter requires a lot of energy to heat homes, summer requires even more energy to cool homes, a good part of it is speculation that emerging countries like China and India will require more and more oil along with North America's dependence on the sweet stuff. In general, for economies to grow, they require more energy each year which means more oil. Peak oil is what happens when oil can't be extracted at a faster rate and so the demand for oil continues to grow but the supply of oil flattens out. [kuro5hin.org]
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Comic for 23 Apr 2005. [Dilbert]
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