$100 a Barrel Oil Could be Back in 2011

The period of relatively cheap oil could be gone by 2011 according to an oil commodities expert. Francisco Blanch, Bank of America-Merill Lynch head of world commodities research, said last week that the price of crude oil could be more than $100 a barrel in just over a year.

Mr. Blanch said he expects the price to rise from its current $70-$80 per barrel range as the result of growing demand in emerging markets such as China, the Financial Times has reported ("Oil Could Exceed $100 Next Year," Oct. 26, 2009).

If that happens, then expect oil exploration to increase, more interest to develop in nuclear and renewable power, and the financial aspects of biofuels to become more favorable for developers. At a minimum, the opportunities for alternative energy fuel development will catch fire again.

In so far as I know, no one expects the demand for oil to less in places like China and India in the years ahead. And assuming -- a big if perhaps -- that the price of oil reflects demand, the future could prove very interesting for clever alternative energy developers.