Reducing investments in exploration will eventually cause a catastrophic rise in oil prices. According to experts Sanford C. Bernstein & Co., at some point the market value of raw materials can exceed $ 150 per barrel.
In particular, according to the Agency Bloomberg with reference to these experts, due to excess supply of oil on the world market in recent years has resulted in a “chronic underfunding” of the oil industry. Investment in exploration has fallen to the lowest level in recent years, the report Sanford C. Bernstein & Co.
As a result, the volume of proven reserves, most major oil companies except ExxonMobil and British Petroleum declined on average by 30% compared to 2000.
“Investors who sought from the managers of oil companies reducing investment and increasing dividends may regret underfunding the oil industry – said the expert. – Any reduction of oil supplies to the world market will result in extreme price increases, perhaps even higher than in 2008.”
Earlier, similar warning was made by OPEC Secretary General Mohammed Barkindo. He noted that in the period up to 2040, global oil and gas industry needs over $ 10 trillion investment.
“To cover oil demand to 2040 requires to 10.4 trillion dollars of investment in the oil industry. Should be eliminated all the gaps. The steadily growing demand should gradually be met. The only way to achieve goals is through cooperation,” — said Barkindo.
At this point in the industry, everything is much better than it was two years ago, said the OPEC Secretary General: “the Agreement OPEC+ led to a change in the energy landscape in the world, OPEC has been able to combine 24 oil producers under a single agreement, this item has not enough time to stabilize oil prices”.