Oil Price may goes up 190 USD/barrel in 20 years
International Energy Agency (IEA) warned that the world will face energy skyrocketing prices and uncontrolled emissions causing greenhouse CO2, gas if the international community does not reach an agreement to cut emissions at the UN conference on climate change coming in Copenhagen, Denmark.
In the annual report "World Energy Prospects" announced, IEA countries stressed the need to flat out towards a real international agreement on climate change, if oil prices will increase to 100 USD barrel within 5-6 years.
Risk of exhausted oil reserves
According to IEA, if countries continue to maintain the current policies, the demand of fossil energy consumption worldwide will increase an average 2.5% per year within 5 years and up about 1.5% / in two decades. This makes the cost of oil and gas in the economy's largest energy consumption doubled in 2030.
Specifically, world oil demand will increase 1% per year increase to 105 million barrels a day in 2030 compared with the 85 million barrels a day in 2008. Meanwhile, oil prices will increase to 100 per barrel in 2015 and 190 per barrel in 2030. World will spend 500 billion a year to cut CO2 emissions.
IEA predicts, world oil demand in the first quarter 4/2009 will rise 170,000 barrels a day and up 1.1 million barrels per day in 2010 due to the economic recovery in Asian countries outside the Organization of Cooperation and Economic Development (OECD).
IEA warns world on the risk of depletion of oil supplies and objectives to ensure the supply of oil at 90-95 million barrels a day currently difficult to implement it. Previously, IEA predicts oil drilling production can be improved from 83 million barrels a day to 105 million barrels a day.
Prospects scarce supply of oil caused the international oil companies such as Eni of Italy large head; ExxonMobil (Hamlet), corporate America's largest oil and gas, Royal Dutch Shell (RDS) of England and the Netherlands .. . We return to Iraq in order to exploit the oil potential of this country.
Early November, Eni has initiated a contract to promote oil production in Zubair, near Basra, where oil reserves estimated 6 billion barrels. Shell, Exxon and ConocoPhillip (COP) is also carrying out negotiations to help increase Iraq's oil production to 6 million barrels a day.
Concerns on increasing trend of oil prices
With the trend of oil price increase exceeded 80 per barrel from early November until now, the U.S. Department of Energy and the IEA warned that oil prices have increased rapidly be dangerous for the global economic recovery. IEA Executive Director Nobuo Tanaka said, oil prices are a concern fast, since the economy began to recover, to the lack of oil supply, pushing oil prices.
In addition, the IEA also concerned about the possibility of a number of projects invested in exploration and exploitation of oil delayed or canceled. Investment in oil sector this year has decreased 20% compared to 2008 and there are several significant progress in recent times. IEA warned, if this trend continues, the world will face difficulties in one or two years.
The U.S. government announced the figures showed crude oil reserves of the country has decreased by 4 million barrels and the U.S. Federal Reserve (FED) will keep interest rates low, making world oil prices have increased by 1%. Cause world oil prices suddenly rise again because the U.S. economy and China, the country's largest energy consumer in the world, there are signs of positive changes, bringing hope to the family increased demand for fuel.
In addition, the weakening of the dollar against other key currencies in the world is also one of the main reasons causing oil prices.
