On 1st March 2004 we published what I still consider the most controversial letter I have ever written. In the letter I predicted that oil prices would exceed $100 per barrel within the next decade (you can see it here). That morning (Brent) oil prices were hovering just over $33, and $100 oil prices seemed a ridiculous prospect to most people. Almost exactly four years later, on 29th February, 2008, the $100 barrier was broken for the first time.
I don’t think I have ever written a letter which provoked more reaction, much of it of the kind that is not suitable for re-production. And, no, I am not reminding you of this fact just to cover myself in glory. In fact, it was not even my own idea; the logic behind the outrageous forecast came from our economic adviser, Woody Brock. The reason I bring it up now is that, after careful consideration, I have decided to reverse my long-standing bullish view on oil prices, as I believe we are approaching the end of the oil era - and this time Woody Brock has nothing to do with it, so don’t blame him if I turn out to be wrong.