Peak oil: Oilfield development investments need managing as transition shake-up looms - Upstream Online
Peak oil: Oilfield development investments need managing as transition shake-up looms | Upstream Online
Oil producers should take a “managed investment” approach to their future output to limit exposure to potential oversupply once peak demand hits global crude consumption, according to a new report.
Concerns over peak oil demand — forecast by the International Energy Agency (IEA) to take place within the next decade — could lead to oversupply and trigger a prolonged phase of falling prices, which in turn would hit returns of new projects and company valuations, according to analysis by UK think-tank Carbon Tracker.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.