International Energy expects oil prices to return to rise after 2008 to more than 100$

International Energy Agency expected the return of oil prices to rise for more than a hundred dollars a barrel with the recovery of the global economy, exceeding two hundred dollars by 2030.



According to Financial Times a report expected to be issued next week by IAEA will explain that although the current market turmoil will lead to a drop in oil prices is temporary, it is clear that the “era of cheap oil is over.”

The Energy Agency expects oil prices to return to rise to more than a hundred dollars between 2008 and 2015 from sixty to seventy dollars.

The newspaper pointed out that the IEA had reached these results because it believes that oil companies are struggling to compensate for declining production from the fields the old world.

The report notes that “it is clear that the current global trends in the supply and consumption of energy that could not be sustained.”

The agency says that energy by 2010 oil companies will have to find new projects produce the equivalent of the production of Saudi Arabia (seven million barrels a day) that the world wanted to avoid a crisis supply middle of the next decade.
IEA estimates coincide with the abolition of oil projects in Kazakhstan and Canada because of lower oil prices, which makes non-commercial projects.

The agency said too that the oil industry must invest 350 billion dollars every year until 2030 to compensate for the lack of obsolete oil production fields, explore new quantities to meet the increasing demand especially in emerging economies such as China.
Production of oil fields is decreasing in the world by 9% annually, and it is possible that the figure was down to 6.7% in the event of increased investment in this sector.
But the IEA report confirms that, even if new investments, this ratio will not fall below 8.6% by 2030.
The rate of erosion of fields larger than previous estimates of the oil industry, as well as the largest previous estimates of the Agency, which added 250 new fields to the previous study included eight hundred field.
Source: Financial Times

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