Mexican Media Brands
Saudi Arabia Predicts Oil Shortage
Saudi Arabia tells a conference in London the world is headed for a petroleum shortage and higher oil prices because the past two years of glut caused producers to cut back on spending to add capacity.
#economics
Share
Saudi Arabia tells a conference in London the world is headed for a petroleum shortage and higher oil prices because the past two years of glut caused producers to cut back on spending to add capacity.
The comment comes after the Organization of the Petroleum Exporting Countries agreed after many months of debate to trim its output by 1%-2%. The cartel won’t decide details about the proposed reduction until it meets on Nov. 30.
The price of a barrel of crude oil plummeted to around $28 per barrel earlier this year from $114 in 2014. Scottish energy consultants Wood Mackenzie estimates the oil industry cut its capital spending by $1 trillion over the same period, according to The Wall Street Journal.
Saudi Arabia’s oil minister didn’t say when he expects the shortage to come. And ExxonMobil CEO Rex Tillerson, speaking at the same conference, doubts that soaring oil prices lie ahead. He points to large inventories of stored oil and ample oil shall capacity in North America, both of which could act to keep crude oil prices down.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
Fuel Economy Gains in July
What you’re looking at here is a sales-weighted fuel economy chart (the numbers in the white boxes represent miles per gallon) that was put together by two diligent researchers, Michael Sivak and Brandon Schoettle, of the University of Michigan Transportation Research Institute.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.