Oil Markets into 2006
Peter Davies, BP Sets out the context for oil and energy today in respect to: oil and gas prices; shares of world primary energy consumption; and drivers for high oil prices (OPEC behaviour post 1999, strong demand growth in 2004, low spare capacity, geopolitics and energy as a financial commodity). The reasons why prices rose, even though market fundamentals weakened are examined and the prospects for 2006 are set out, in relation to: the call on OPEC being less than current OPEC production levels; and the risks relating to economic growth, supply delays and outages, and geopolitical uncertainties. Into the medium term it is anticipated that: spare capacity will build back to historic levels through to 2010; that oil prices will remain over $40 a barrel; and that although market forces are expected to respond, it could take a long time to reassert.
Categories: Energy demand, Energy economics, Meetings, Oil
Tags: BP, Fossil fuels, Geopolitics, Global, Growth, oil market outlook, Oil markets, OPEC, Pricing, Production capacity, Supply demand balance, Upstream
Oil Markets into 2006.pdf 644.22 KBJan
2006