Skip to comments.OECD Says Oil Prices Could Reach $150-$270 By 2020
Posted on 03/23/2013 2:33:16 PM PDT by Laurent.w
Oil prices could rise to anywhere between $150 and $270 a barrel by 2020 as demand growth in emerging markets like India and China out paces expected supply, the OECD said Wednesday.
The report shows the central role that Asian oil demand will play in determining prices, even as the U.S. reduces its need for energy imports amid a surge in its unconventional hydrocarbons production. Earlier this week, the U.S. Department of Energy reported China overtook the U.S. as the world's largest net oil importer.
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All the more reason to frack and drill for more of our oil and gas, and get more trucks converted to be able to run on either diesel or LNG.
Just another attempted self-serving prediction. Completely worthless. Shame on you for promoting it.
With dip shiite in the White House, I won’t be surprised to see this prediction come true.
Accounting for 10% monetary devaluation (US $1.4 T deficit against $14 T GDP), that increase is virtually all ‘inflation.’
REGARDLESS of whether the price of oil is going up, level, or down, it is in the strategic interests of the US to have as much of our energy needs as possible coming from domestic production.
That will never happen as long as the Demonrats remain in control. And almost all signs points to their continued and even more destructive rule.
Great! By then the oil and gas rich states should be rolling in dough, while those run by Democrats and their enviro-nazi base should be begging for the few pennies left in the US Treasury.
We need more nuclear plants built out west where yucca mountain awaits.
FLASH!: Anyone can make predictions and some idiot blog or paper will report them. How does this guy know the future?
Drill here. Drill NOW. Build Keystone Pipeline. Frack all we can.
Let the rest of the world drink their damn oil; and eat their damn sand. We should be energy independent. And, only the (lack of) will of the spineless political class and the elected aristocracy stand in the way.
“Or crude could be $35 a barrel with open markets with American oil. I heard that Dakota oil cost about $18 a barrel to produce. Obamas attempted monopoly needs to be broken. “
I don’t know where you got those figures. I am in the oil business and the info I get is that the cost is about $70 per barrel. Horizontal drilling is a very expensive process. Also the decline rates on the horizontal wells are very steep so the economics at today’s prices are questionable. We do have more oil to produce but it is not going to be cheap.
We do have more oil to produce but it is not going to be cheap.
In an open market it will not be $200 a barrel though. I got the $18 directly from the mouth of the guy pumping gas next to me. It sounded good.
“In an open market it will not be $200 a barrel though. I got the $18 directly from the mouth of the guy pumping gas next to me. It sounded good.”
That depends a lot on how much more money the fed prints. I guess since he was pumping gas he must be an expert. :-)
I guess since he was pumping gas he must be an expert. :-)
The only ones that sound better are the guys next to you at a bar after a few drinks.
I prefer the expertise of cab drivers.
That is just inflation, thank dumBO and the Fed.
I saw a cab a few months ago.
It’s already happened and is continuing to happen. There’s at least four big drilling rigs within a 20 minute drive from my house. The deep wells are are not being immediately produced. There’s not only an over supply of natural gas on the market, there’s far more where that came from when someone completes the collection pipelines and opens the valves. A lot of the wells are shut in.
There’s no need for the distractions and obfuscations. Due to globalism in business and politics for over three decades, east Asia and other countries will continue adding manufacturing, other production and hundreds of millions of new drivers. That’s the situation that we have to work with now.
And we (the West) will building a large manufacturing base again in the very near future and decreasing the current insane paradigm of commuting. The default process will take care of the contemporary tyranny of gossip and regulations against healthy behaviors. Deal with it. We’ll be making parts and products in every neighborhood, NIMBYs.
not while we’re getting record amounts at home.
...will be building, even.
using more and more natural gas instead of gasoline, will drive the price of oil down due to lessened demand on oil. we have a bright energy future if we can figure a way to get through this current mess
Keeping the supply down in order to please the muslim oil producers.
>I guess since he was pumping gas he must be an expert. :-)<
About as much of an expert as the likes of Cheney and Bush who were titled “oilmen” but didn’t spend one hour in a unit operations class.
Big Hat, no cows.
I am retired from the industry and the barrel cost I read off the gov report 2 years ago was $28 per barrel to the refinery. The frack scare is 98% BS started by lefty enviro-nuts (who are funded mainly by guess who? OPEC!), and who have since admitted it wasn’t actually true. We’ve been fracking for years with no serious environmental issues, besides a few isolated shady drillers dumping the slurry mud someplace they shouldn’t have, but that is rare and against the law. HAZMAT cradle to grave laws hold everyone accountable and requires written records. To not use the oil we have in the US is complete suicide to what’s left of our economy. It could drop the price of fuel by more than half and create thousands of new jobs in the US. Anyone who disagrees is just begging to put the final nail in the US working man’s coffin. Research the facts and learn the truth instead of repeating some made-up crap propaganda handed out by the lefties. God Bless America!
There are 3 reasons why oil is likely to stay very expensive.
- Thanks to asia, the world’s consumption of oil is still increasing, contrary to what we saw after the first oil crisis (1973) and after the second oil crisis (1979-1981).
- Outside the Middle East, new drillings are around 10 times more expensive than drillings in the Middle East.
In 2011, the marginal cost of oil production - the cost of production for the most expensive new fields - was $92.26 a barrel for the 50 largest listed oil and gas companies.
The most expensive oil fields essentially set the floor of oil prices, worldwide.
- OPECs share of world oil production has been rising since 1985.
The more oil is produced in the Middle East, the more expensive oil will be if there are tensions.
In 2011, the arab spring and tensions with iran caused the price of oil to rise by nearly $40 a barrel.