Oil: Prices

Transport written question – answered on 12th May 2008.

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Photo of Norman Baker Norman Baker Shadow Secretary of State for Transport

To ask the Secretary of State for Transport pursuant to the answer of 4 March 2008, Official Report, columns 2263-4W, on oil: prices, whether she plans to revise her projections for the future price of oil in (a) 2010, (b) 2015 and (c) 2020.

Photo of Jim Fitzpatrick Jim Fitzpatrick Parliamentary Under-Secretary (Department for Transport)

holding answer 9 May 2008

The Department for Transport uses oil price projections from the Department for Business, Enterprise and Regulatory Reform (BERR) in its transport modelling. On 2 May 2008, BERR published revised oil price assumptions to (a) $65; (b) $68; and (c) $70 for the years requested. These are in 2007 prices and refer to their central scenario.

We are in the process of using these updated projections to make new road traffic and congestion forecasts. The new oil price projections will also be incorporated into the latest versions of Department guidance and software used in developing business cases for funding by promoters.

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Steve Rawlings
Posted on 18 May 2008 12:46 pm (Report this annotation)

I'm confused. Why is the oil price predicted to be $65 (per barrel?) in 2010 when, on 2nd May, the oil price already stood at $120 per barrel? Is this another case of Government ministers denying the concept of 'peak oil'; or is $65 the expected oil price expressed in a non-standard unit of measure. Price per gallon, perhaps?