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$100 Oil Will Return Soon Enough: Study

Price will rebound with economy, likely to hit $200 a barrel in 2030

By Ambreen Ali,  Newser User

Posted Nov 6, 2008 10:53 AM CST
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(Newser) – If today’s price of $60 per barrel of oil seems too good to be true, that’s because it is. Oil prices will rebound to $100 a barrel once the economy recovers, and climb toward $200 by 2030, the market’s most comprehensive review predicts. Output is declining at a steep natural rate of 9% while demand grows nearly unabated, the Financial Times explains.

Companies will have to start pumping a Saudi Arabia’s worth of oil—7 million barrels a day—by 2010 to avoid a crunch, requiring an annual development investment of $350 billion until 2030. But even that hefty price tag is only a temporary fix to the inevitably depleting older oil fields. “The era of cheap oil is over,” the International Energy Agency warns.

Traders deal in the crude oil futures pit of the New York Mercantile Exchange on Monday. A new report says the barrel will exceed $200 by 2030.
Traders deal in the crude oil futures pit of the New York Mercantile Exchange on Monday. A new report says the barrel will exceed $200 by 2030.   (AP Photo)
An oil pump decorated to look like a bird stands at rest today in Bahrain's oil fields. The world's limited supply is depleting at a natural rate of 9%.
An oil pump decorated to look like a bird stands at rest today in Bahrain's oil fields. The world's limited supply is depleting at a natural rate of 9%.   (AP Photo)
An employee of the Bahrain Petroleum Company moves an oil drum. The price of the an oil barrel will jump back over $100 when the economy recovers, a report says.
An employee of the Bahrain Petroleum Company moves an oil drum. The price of the an oil barrel will jump back over $100 when the economy recovers, a report says.   (AP Photo/Hasan Jamali)
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Oil could last us 40 years
Times (UK)

Tumbling oil indicates lengthy recession
Associated Press

Saudi Arabia cuts production to boost price
Independent (UK)

 
oil • Saudi Arabia • oil price • predictions • oil supply • $100 a barrel oil • oil companies • Big Oil

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