OPEC, the supplier of 40 percent of the world's crude oil, said low prices may lead to a supply crunch by 2013 and rejected consumers' arguments that cheap oil will help the world economy to recover.
"If the current low-price environment persists, this short- term relief may not translate into long-term gains," OPEC Secretary Abdalla el-Badri said in an e-mailed statement today. "The failure of the industry to invest will result in a supply crunch by 2013 and beyond."
Badri was responding to Nobuo Tanaka, the executive director of the International Energy Agency, who was cited in yesterday's Financial Times as saying the global economy would get the equivalent of a $1 trillion stimulus if oil prices stayed at $40 a barrel this year. The IEA advises 28 oil importing nations on energy policy. Read more from The Houston Chronicle
While T. Boone Pickens states:
'If you don't think that you're gonna see a $200 barrel of oil, you're joking.'
While T. Boone Pickens states:
'If you don't think that you're gonna see a $200 barrel of oil, you're joking.'
Link source: the OilDrum