KPC CEO: Enormous Demand for Oil Forecasted in 2019-2020
There will be an ‘enormous demand’ for oil in 2019-2020, which will see a spike in prices, according to Nizar Al-Adsani, chief executive officer of Kuwait Petroleum Corporation (KPC).
The demand will arise as a result of the lack of investment in the upstream industry during the downturn, Al-Adsani told oil and gas delegates during an Offshore Technology Conference presentation, held in Houston, Texas.
“I think you will see … probably $70-$80 [per barrel] … given that lack of investment in 2015-16 that will catch up with us in 2019-20,” Al-Adsani.
The KPC CEO also forecasted that the sector won’t see prices of $100 per barrel again, but said that prices of somewhere between $50 and $60 per barrel were comfortable for consumers, producers, international oil companies and shale producers alike.
“There is a mindset now that prices of $100 will not be there anymore, so that’s a given,” Al-Adsani said.
“I think we will live through somewhere between $40 and $60 in the short term … from now until the end of the year,” he added.
Al-Adsani’s prediction is in line with projections from Rigzone’s readers.
Forty percent of the 250 voters that took part in a survey back in April stated that Brent will be worth around $60 per barrel by the end of the year, with 35 percent anticipating a price of around $50 per barrel.
Fourteen percent anticipated that Brent will climb to $70 per barrel or higher, and 11 percent outlined a more pessimistic future for the price of the commodity, expecting it to drop to $40 per barrel or below within the next few months.
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