Increasing energy costs
Energy prices have multiplied over the last few years while the energy demand continues to grow. Quick depletion of available fuel resources is followed by the increases of their prices and the prices of generated energy. In just five years, oil prices have quadrupled to more then $100 a barrel – a level that would have been unthinkable just a short while ago.
One of the reasons for the increasing oil prices is the fast decline in the fossil fuel reserves. According to ASPO, The Association for the Study of Peak Oil, we consume several times more conventional oil than we discover, thus putting supply and prices under even stronger pressure.
Oil price: beyond $100 per barrel
Source: ASPO, June 2008, www.peakoil.net
Quotes from Energy Commission of Malaysia
| The acting chairman of Energy Commission stated that even at a low increase rate of the energy consumption in Malaysia of 4.7% per year, the demand in the country will be 10 times bigger in 2020 than it was the case in 1980. Based on that, local oil reserves can only last for about 12 years. “This will inevitably cause constraints on the nation’s ability to meet future energy needs, unless we come up with energy-efficiency measures,” he said. |
* Source: The Star, January 2006
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