Oil to hit $200 within ten years, report says
Güncelleme Tarihi:
The world will experience a serious oil supply crunch within five to ten years, which could push prices above $200 a barrel unless there is a collapse in oil demand, a think tank institution, the Chatham House said on Friday.
"In reality, the only possibility of avoiding such a crunch appears to be if a major recession reduces demand - and even then such an outcome may only postpone the problem," Professor Paul Stevens said in the Coming Oil Supply Crunch report.
"While the forecast is controversial and extremely bullish, even allowing for some increase in capacity over the next few years, a supply crunch appears likely around 2013," he added.
The report warned that investment in new oil supplies has been inadequate as oil firms prefer to return profits to shareholders rather than reinvest it.
To ward off a potential crisis, the report recommends helping producers manage 'resource curse' issues, welcoming sovereign wealth funds and bringing OPEC into the International Energy Agency's emergency sharing mechanism.
Prof Stevens does conclude that only "extreme policy measures could achieve a speedy response" in boosting supplies and lowering oil prices - a move that is likely to be "politically unpopular."
Oil prices struck record highs above 147 dollars in July, boosted by weakness in the
A strong dollar makes good priced in the
Photo: Reuters