Environmental analysis: Oil spill disaster 'could lead to oil crisis'

The oil industry is likely to suffer as awareness of the risks of drilling grows among environmentalists, an oil and energy group has said.

BP's recent oil spill off the Gulf of Mexico may cost the company more in the long-term as major organisations could join the lobby against the oil industry for its harmful effect on the environment, according to the UK Industry Task-Force on Peak Oil and Energy Security.

Spokesman John Miles said: "There is likely to be a massive outcry against the environmental risk of drilling in extreme locations and operations may get suspended."

Mr Miles added that this outcry could also lead to an awareness of the problem of oil shortage and affect fuel prices in the future.

However, a report by the US Energy Information Administration indicates that the aftermath of the oil spill on April 20th has shown no real change in the oil industry.

On May 13th, it was reported that oil prices were at a three-month low, with the average price of a barrel under $75.

Posted by Joseph Hutton