Supply crunch coming

[Tomasz + 1,608]

What do you think about supply crunch in next decade?

A lot of oil analysts like Art Berman, Energy Aspects, Wood Mckenzie and also IEA and EIA are predicting this in long-term predictions like World Energy Outlook because of not enough  investments in conventional oil after 2014 and also low oil discoveries for the last 3 decades especially a couple of last years which means lower and declining quite fast oil proven reserves.

You can find easily hundreds of sources in web just type oil supply crunch in google.

Some say that timeframe of big oil deficit is about early 20s other point out rather at 2025 or even later.

I personally agree with them and I read quite a lot these articles= I mean also EIA and IEA World Energy Outlook. If we take under consideration timeframe of 5 to 7 years of implementation coventional oil projects that we are missing now after 2014 I would point out  rather at early 20s as the time that oil deficit would start to be visible. Some like Wood Mckenzie say its about 6 milions barrels of missing production.

There is of course problem whether because of decarbonization oil producers will be able to monetize this oil deficit in full but I think in longer term perspective OPEC should not fight hard with shale producers and allow them to drain relatively very small oil reserves fast and at least peak somewhere in next decade. Keep in mind Im talking about long term perspective until 2040. 

So because its after 2 at night in my country I wont make a longer post  and I  would like to know your opinion about that.

If you hear about that for first time just type oil supply crunch in google or look what these oil analysts say.

 

Edited December 25, 2018 by Tomasz