The International Energy Agency forecasts that after the global economy recovers, oil will again rise above 100 dollars a barrel, and by 2030 may exceed 200 dollars. The report says the era of cheap oil is over, old fields are running dry, and about 350 billion dollars in annual investment will be needed to meet rising demand, especially from China.
A barrel of oil will again cost more than $100 after the global economy recovers from the financial crisis, Financial Times reports, citing a statement from the International Energy Agency in the newspaper’s possession, which will be published next week."While market volatility may temporarily lower oil prices, it is becoming clearer and clearer that the era of cheap oil has ended," the statement says.
It forecasts that between 2008 and 2015, world oil prices in real terms, adjusted for inflation, will rise from the current $60-70 per barrel and will average more than $100, and by 2030 could exceed $200 per barrel.
The IEA explains the rise in oil prices by saying that oil companies will have to compete to produce new volumes of oil sufficient to offset the sharp decline in production at old fields.
To meet the steadily increasing demand for energy from countries such as China, about $350 billion will need to be invested annually in oil field development, the report says