Oil Prices Will Stay Low for 2009
December 15, 2008 - Filed under: Faculty & Staff | Tagged: Economics, Educated Guesses
After a year in which oil prices fluctuated from record highs to the lowest prices in the last five years, a University of Alabama engineering professor predicts that oil prices will remain low during 2009, thanks of the struggling national economy.
“If the economy does not rebound quickly in 2009, oil prices should remain in the fifty dollar a barrel range, which will result in gasoline prices around a dollar and a half per gallon,” says Dr. Peter Clark, associate professor of chemical and biological engineering at UA.
As in the past, OPEC influences supply and demand, and the price should remain low, assuming that OPEC does not dramatically reduce production.
The price could also change quickly if there is a significant supply disruption, such as a major hurricane in the Gulf of Mexico.
“While we are not in immediate danger of running out of oil, production has a difficult time keeping up with demand in a good economy. A rational energy policy that emphasizes, conservation, alternative fuels, and domestic production will help to moderate the increase in the price of oil,” Clark says.
The University of Alabama, a student-centered research university, is experiencing significant growth in both enrollment and academic quality. This growth, which is positively impacting the campus and the state's economy, is in keeping with UA's vision to be the university of choice for the best and brightest students. UA, the state's flagship university, is an academic community united in its commitment to enhancing the quality of life for all Alabamians.
CONTACT: Dr. Peter Clark, 205/348-1682 (office), 205/246-3607 (cell), pclark@eng.ua.edu