NEW YORK & LONDON - As the price of crude oil reaches $121/bbl ($0.80/litre), many have blamed the tensions in the Middle East and Africa for the hikes.
However, a new investigation has found out that the price of one barrel (158l) is the one that is rising, up from $10 last week to $58.07 today, whereas the true cost of vehicular petroleum (without the barrel, but plus taxes and other costs) has only increased from $1.19/l last week, to $1.30/l.
Why has the price of one barrel risen so much?
"Well," said the Head of Barrels and Transportation of Fuels at Dutch Shell, "Most of our barrels are made from high-grade aluminium-steel alloys. These are darned expensive, you know. We re-use, of course, but, nobody recycles. And every day we get more and more oil, and a shrinking amount of barrels. So, then we have to produce the barrels, even more and more. The cost of oil isn't going up at all - it's the cost of barrels. Supply and demand, really."
What will happen in the future?
Well, according to results obtained by this reporter, by 2013, the cost of one barrel will rise to $90. By 2020 it will be $150. Coupled in with increasingly drier oil reserves, the cost of crude oil could rise to $300/bbl ($1.89/l) by 2020.
The United Nations Organisation has suggested that we not only recycle our metals to create more barrels, but also look to alternative fuels, so that there is a higher barrel to oil ratio, and hopefully, not the other way around.