In June 2008, a Manufacturer’s Alliance for Productivity and Innovation (MAPI) paper entitled “The Future of Oil: Are We There Yet?” discussed the determinants of the price of oil. At the time, the price was rising sharply but had not yet reached its peak of $147 per barrel, a level reached the following month.
The report also summarized competing views regarding the future of oil production. Pessimists argued that the level of world production was nearing its peak and that it would be increasingly difficult and expensive to accommodate the growing demand for oil. Consequently, the world price of oil was expected to rise significantly over time.