Jeff Rubin on Higher Future Oil Prices, “We Are Not Running Out Of Oil But We Are Already Out Of Cheap Oil”
Jeff Rubin comments on how world oil prices are set to be trading around the $200 US dollar mark in the future. Rubin, the former Chief Economist of CIBC World Markets warns that higher oil prices are a result in a lack of affordable, extractable global world oil, which has now passed the easy peak oil extraction year of 2005.
Jeff Rubin is not an oil alarmist—he doesn’t think that the world’s supply of crude will run out and cause resource wars and food shortages of apocalyptic proportions. In fact, he doesn’t even think the world’s supply of crude is running out at all. Rubin made this clear as he addressed the Business of Climate Change Conference in Toronto last September, opening his keynote address with the statement, “The world’s not running out of oil.” However, after milking the pause for a second or two, Rubin went on: “But it has already run out of oil it can afford to burn.”
Rubin, former head economist at CIBC World Markets, is often referred to as Canada’s top economist, largely because of his bold and accurate economic predictions: in 2000, he forecast that the price of crude would hit $50 per barrel within five years (it broke the $50 mark in 2004) and foresaw the huge price spike of 2008. He recently predicted that the price of crude would hit $100 again by the fourth quarter of this year.
Video on Jeff Rubin speech regarding oil prices at The Business of Climate Change conference in January 2010.