Oil Producers Need to Cut Their Dependence on Oil

[Marina Schwarz + 1,576]

https://www.reuters.com/article/us-iea-exporters/more-than-ever-big-oil-exporters-must-diversify-economies-iea-idUSKCN1MY35C

Shocking.

[booko kwasi + 2]

"Structural factors such as the boom in U.S. shale oil production, which is taking market share from rivals such as Saudi Arabia or Nigeria on the supply side, and efforts to reduce fossil fuel use to slow climate change on the demand side, are already putting oil producers’ budgets under pressure." Not withstanding the above the game changer will be how market forces will play to keep oil price below $50 a barrel mark. It will take a substantial reduction in oil prices for producers  plan against dependency.

[jaycee + 348]

1 hour ago, booko kwasi said:

"Structural factors such as the boom in U.S. shale oil production, which is taking market share from rivals such as Saudi Arabia or Nigeria on the supply side, and efforts to reduce fossil fuel use to slow climate change on the demand side, are already putting oil producers’ budgets under pressure." Not withstanding the above the game changer will be how market forces will play to keep oil price below $50 a barrel mark. It will take a substantial reduction in oil prices for producers  plan against dependency.

The article makes points but comes to the wrong conclusions I would say.

Another paragraph says...

'The agency, which advises western governments on energy policy, sees oil demand growing by 10 percent to more than 106 million barrels per day by 2040 under its “New Policies Scenario”, and natural gas demand increasing by over 40 percent to 5,400 billion cubic meters in the same period. '

Amazing so they are predicting a growth in oil consumption, not a fall as many would try to tell us, and a 40% rise in gas consumption and they are warning countries that the oil, and presumably gas, price may not rise! So who is going to drill for oil if there is no profit? Oil will have to go up in value to meet rising demand nobody is going to produce at a loss. When  the oil price was low recently there was very little expolration going on and not a lot of development. Unless somebody thinks there is enough shale in the US to cover the depletions of the rest of the world and the rise in demand whilst not running out in 10 years due to its own very steep depletion curve. Something very odd in their assumptions.