Prominent Think Tank Says Oil Supply Crunch Coming
Think high crude oil prices are history? Maybe not. In fact, one prominent European think tank is forecasting $200 a barrel within the next few years. From the BBC News (UK) website Friday:
A serious oil supply crisis is looming, which could push prices above $200 a barrel, a think tank has warned.
A “supply crunch” will affect the world market within the next five to 10 years, the Chatham House report said.
While there is plenty of oil in the ground, companies and governments were failing to invest enough to ensure production, it added.
Only a collapse in demand can stave off the looming crisis, report author Professor Paul Stevens said.
“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,” he said in The Coming Oil Supply Crunch.
Professor Stevens, who is the Senior Research Fellow, Energy, Environment and Development Programme, at Chatham House, added:
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.
Source:
“Oil ‘could hit $200 within years’”
BBC News (UK), August 8, 2008
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