Professor Warns Of $200 Per Barrel Oil This Decade

Oil prices could reach more than $200 per barrel—resulting in gas prices as high as $10—over the next five to 10 years, according to University of Alaska Fairbank's Doug Reynolds (via newsminer.com).

Speaking to the Greater Fairbanks Chamber of Commerce, Reynold explained how increasing demand for oil from developing nations like India coupled with diminishing production will cause oil prices to skyrocket.

As the price of oil goes up, indirect costs from energy production, taxes, and labor also climb translating into to higher numbers at the pump.

Reynolds said small Alaskan communities like Fairbanks can expect 10-20% higher gas prices compared to other U.S. cities because costs must be spread out over a much smaller market and naturally, there is less competition.

Why Are Gas Prices So High? from Fairbanks Chamber on Vimeo.