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Shifting Demand Suggests a Future of Endless Oil

In: Business and Management

Submitted By oOcoconut
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Article: Shifting demand suggests a future of endless oil
Author: Stanley Reed The article Shift demand suggests a future of ending oil by Stanley Reed stated that the future of oil may be brighter than many believe. Because of the current price range making oil companies profitable and developing new technologies reopen fields enhanced to produce more oil. The increases in consumer demand and supply, prices of oil have been up in the peak ever since. The global production of oil is expected to increase by millions of barrels a day due to new field discovery and new technologies.

The article also mention that there are plenty of oil left under the ground and because of the new technologies they were being able to find ways to get to the oil better and faster. As demand of oil increase dramatically, the prices of oil also jump high, making the previously unprofitable fields now profitable and production increases. More and more investors are investing money into the oil field making by producing and invest in new extraction technologies, this is so successful that Leonardo Maugeri, a senior executive at Italian oil major ENI, puts it: “there will be enough oil for at least 100 years.”

The fact that there’s still plenty of oil left is driving major’s oil companies to come up with new technologies which also causes the price of oil to rise very high from $80 per barrel to $147 per barrel in 2008. The more oil the companies are planning to suck up, the higher the price of oil will increase. Price of oil will only increase from now on because of the limited of oil left each time and the money they’re investing in for new technologies.

As new technologies developed for oil increase, there is a decrease of consumption for oil in the US dropped by 9% over the last two years. This was caused by the recession,

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