Global oil prices could soar to $200/b if no new investments are made in the oil and gas sector in the short-term, Oman’s energy and minerals minister said Sept. 9, in reply to the International Energy Agency’s assessment for reaching net-zero emissions by 2050.
The IEA said in a May 18 report that, under an energy scenario needed to put the world on a path to net-zero emissions by 2050, there should be no new oil and gas developments and that global oil demand would collapse by 75%.
“Recommending that we should no longer invest in new oil…. I think that’s extremely dangerous,” Mohammed al-Rumhy said at a ministerial dialogue on clean energy transitions in the Middle East and North Africa region organized by the IEA.
“My biggest fear, if we stop investing in the fossil fuel industry abruptly, is there will be energy starvation and the price of energy will just shoot [up]. The demand for oil and gas may go down but in the short-term we could see $100/b or $200/b scenario, which although it sounds very attractive today [to producers], it’s something that I think many of us, if not all of us, would not like to see happening in the market.”
Oman, the biggest Middle Eastern oil producer outside OPEC, is a member of the broader 23-member OPEC+ coalition, which collectively controls about half of the world’s oil production capacity and is currently tapering its output restraint agreement to balance the oil markets amid the pandemic.
Race against time
The race to net-zero emissions is a race against time, IEA’s executive director Fatih Birol told the ministerial dialogue.
“It’s an interesting race. Unless everybody finishes the race, nobody wins the race,” Birol said.
“Today 70% of the global GDP of the countries around the world committed themselves to net-zero [by] 2050. The largest consumers are taking these steps and this will have implications for oil demand and therefore for the investments.”
The IEA outlined its first roadmap for how the global energy sector can achieve net-zero emissions in the landmark May 18 report, seeing global oil supplies needing to shrink more than 8% annually. Under this scenario, oil demand would never regain its pre-pandemic peak in 2019, shrinking to just 24 million b/d in 2050.
The IEA’s advocacy for net-zero emissions was challenged by OPEC, which warned the report could increase oil market volatility and jeopardize needed investment in fossil fuels, the group said in an internal report to its members seen by S&P Global Platts on May 20.
OPEC’s most recent long-term oil market forecast, issued in October, projects global demand to rise from pre-pandemic levels of about 100 million b/d to peak at 109.3 million b/d around 2040, before declining to 109.1 million b/d in 2045 and plateauing “over a relatively long period.”
$ 2oo oil???
Re: $ 2oo oil???
The only thing that will create peak demand for old is "Peak Human Population" or humans willing to accept a much lower standard of living.
Estimated human population is 7,892,396,400 with growth of 56,404,100 YTD, approximately 222,940 per day. Covid has not slowed population growth.
Why will oil demand keep growing?
1. China and India will not adopt the "Green New Deal". They can't afford it.
2. We lack the raw materials to build enough renewable energy projects to replace the coal and natural gas fired power plants.
3. We lack the copper and nickel needed to come anywhere close to half of the EV growth estimates.
4. Most humans really don't believe the climate change BS and they will not accept a lower standard of living.
Estimated human population is 7,892,396,400 with growth of 56,404,100 YTD, approximately 222,940 per day. Covid has not slowed population growth.
Why will oil demand keep growing?
1. China and India will not adopt the "Green New Deal". They can't afford it.
2. We lack the raw materials to build enough renewable energy projects to replace the coal and natural gas fired power plants.
3. We lack the copper and nickel needed to come anywhere close to half of the EV growth estimates.
4. Most humans really don't believe the climate change BS and they will not accept a lower standard of living.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: $ 2oo oil???
> Most humans really don't believe the climate change BS and they will not accept a lower standard of living.
Despite this, politicians today are willing to tax us to death, prohibit, restrict, delay, harass, and disinvest energy companies .
They are the same idiots that gave Afghanistan to terrorists and released them from Gitmo.
Its really unbelievable...Have they no shame???
Someone needs to stand up and say no, we aren't going to do what you tell us!
Despite this, politicians today are willing to tax us to death, prohibit, restrict, delay, harass, and disinvest energy companies .
They are the same idiots that gave Afghanistan to terrorists and released them from Gitmo.
Its really unbelievable...Have they no shame???
Someone needs to stand up and say no, we aren't going to do what you tell us!
-
CreativeEquity
- Posts: 107
- Joined: Sun Sep 05, 2021 5:06 pm
Re: $ 2oo oil???
I vote with my money. Portfolio allocation is my form of protest against China Joe and the other criminals in DC. They are trying desperately to keep us distracted with the so called "pandemic" and "race wars" while they quietly grow their CCP sponsored trust funds. But I believe as people wake up the tide will turn and natural resources will re-rate to fair value.