Perry says oil could reach $300 a barrel
Bruce Bullock, director of SMU's Maguire Energy Institute, talks about Texas Gov. Rick Perry's prediction that oil could reach $300 a barrell.
By Aman Batheja
Gov. Rick Perry said Friday that the price of a barrel of oil could jump as high as $300 if conditions in the Middle East continue to deteriorate.
Perry was in Washington, D.C., speaking at events including a National Governors Association meeting. At a briefing that included some bloggers, Perry was asked about the price of oil hitting $100 a barrel this week, according to Shopfloor.org, a blog run by the National Association of Manufacturers.
Perry took the opportunity to criticize the Obama administration for blocking drilling in the Gulf of Mexico after the BP oil spill. He also spoke about where the price of oil might be headed:
"You said hundred-plus-dollar-a-barrel oil. Yes. That's today. It certainly could go to $200 or even $300 a barrel if . . . we're to see continued deterioration of peaceful conducting of business in the drilling and transportation of oil (in the Middle East)," Perry said. . .
Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University, said $200 a barrel for oil is "possible but not likely." Oil reaching $300 a barrel is not realistic, he said.
"I don't necessarily see that within the realm of possibility because at some point you've got a demand effect," Bullock said. "People stop driving. The economy slows down and the price goes down."
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