Gov. Rick Perry said today that the price of a barrel of oil could jump as high as $300 if conditions in countries in the Middle East continue to deteriorate.
Perry is in Washington, D.C. speaking at events including a National Governors Association meeting. At a briefing that included some bloggers, Perry was asked about the price of oil hitting $100 a barrel this week, according to Shopfloor, a blog run by the National Association of Manufacturers.
Perry took the opportunity to criticize the Obama administration for blocking drilling in the Gulf Coast after the BP oil spill. He then spoke about where the price of oil might be headed:
You said hundred-plus-dollar-a-barrel oil. Yes. That’s today. It certainly could go to $200 or even $300 a barrel if the situations in the Middle East – which are Libya, into Syria, Jordan, Iraq, Iran, Saudi Arabia, Yemen all of those countries – if we’re to see continued deterioration of peaceful conducting of business in the drilling and transportation of oil...I don’t think it’s out of the reach of possibility to see oil even twice or three times what it is today –- devastating to the world economy.
Forecasts of oil someday reaching $200 a barrel have come before but predictions of $300 are more rare. Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University, said whether the price of oil spikes in the near future will depend on whether Saudi Arabia remains stable.
"Oil prediction crsytal balls are hazy," Bullock said. "When you throw in revolutions, they become more hazy."
Bullock said $200 a barrel for oil is "possible but not likely." Oil reaching $300 a barrel is not realistic, he said.
"I don't necessarily see that within the realm of possibility because at some point you've got a demand effect," Bullock said. "People stop driving. The economy slows down and the price goes down."
Also in the interview, Perry talked up other energy sources including wind and nuclear but repeated his disdain for corn-based ethanol.
"I am an all-of-the-above energy advocate with the notable exceptions of corn-based ethanol, one of the great political scams, economic scams, of the 20th century," Perry said, according to audio posted on Shopfloor.org.
-Aman Batheja
Well, that is really irresponsible. Elected "leaders" shouldn't engage in unsubstantiated speculation like that. They know their words can drive the market and be a self fulfilling prophecy... not that any takes Perry that seriously.
Just another reason why he will never be a serious contender for the presidency.
Posted by: Alberto Knox | February 25, 2011 at 04:49 PM
Perry is a farmer, not an oil man. You may as well ask Justin Beiber.
Posted by: crobinson | February 25, 2011 at 06:15 PM
And still our "president," that mad moonbat in the Oval Office and his horde of "green" orcs refuse to allow drilling on our coasts (and the Alaskan wilderness) except so far out as to render the drill sites very dangerous.
Posted by: USMCGunner | February 25, 2011 at 06:32 PM
Spanking the President over drilling in the Gulf is a red herring, and irresponsible to boot. There is not the slightest chance that recovering all the available petroleum in the Gulf would bring the domestically produced portion of the US energy demand above 20%.
Oh, and well before oil reaches $300 a barrel, economies all around the world, including ours, will be well and truly decimated.
Posted by: Elainepoe | February 25, 2011 at 07:08 PM
the..real..scam..is..raising..the..retirement..age..to.70..if..you..can't..figure..how..many..people..you..need.paying..in..the..system..the..children..of..the..corn..hung..the..blue..man..i..wonder..what..the..symbolism..of..the..blue..man..is..do..cops..work..to..there..70..in..red-ox..equations..you..can..make..anything..at..what..price..of..oil.does..the..reduction..oxidation..equation..become..profitable
Posted by: Darrellgrand | February 26, 2011 at 11:34 AM