TAGS: oil prices, gas prices, vending routes, vending business, commercial fleets, energy trends, oil capacity, Oil: The Next Revolution, Leonardo Maugeri
CAMBRIDGE, MA -- Oil prices are on their way down. This is good news for route operators looking for relief at the pumps. But are those lower prices here to stay? According to a new report by a senior fellow at Harvard University's Belfer Center for Science and International Affairs at the Harvard Kennedy School, the decline in prices to a more reasonable level might be long-term.
In his report -- "Oil: The Next Revolution" -- Leonardo Maugeri makes the case in 75 fact-filed pages that oil capacity is growing at an unprecedented rate. How fast is it growing? Maugeri estimates that its growth might just outstrip demand in the future with wells pumping out 50% more than they do today, leading to even lower prices.
Those in the know are giving Maugeri's predictions a lot of credibility. Commodity and financial websites have been buzzing with news of the report that would seem to signal a death knell for the concept of "peak oil" -- reaching full capacity of output.
One reason why Maugeri's theory has gained such traction is that he has the kind of credibility that demands attention. Not only does he have a solid business experience as economic advisor to energy multinationals, he is among a handful of analysts who successfully pegged the top price in crude at $145 back in March 2008.