KPC CEO: Enormous Demand for Oil Forecasted in 2019-2020

KPC CEO: Enormous Demand for Oil Forecasted in 2019-2020
KPC CEO predicts an "enormous demand" for oil in 2019-2020.

There will be an ‘enormous demand’ for oil in 2019-2020, which will see a spike in prices, according to Nizar Al-Adsani, chief executive officer of Kuwait Petroleum Corporation (KPC).

The demand will arise as a result of the lack of investment in the upstream industry during the downturn, Al-Adsani told oil and gas delegates during an Offshore Technology Conference presentation, held in Houston, Texas.

“I think you will see … probably $70-$80 [per barrel] … given that lack of investment in 2015-16 that will catch up with us in 2019-20,” Al-Adsani.

The KPC CEO also forecasted that the sector won’t see prices of $100 per barrel again, but said that prices of somewhere between $50 and $60 per barrel were comfortable for consumers, producers, international oil companies and shale producers alike.

“There is a mindset now that prices of $100 will not be there anymore, so that’s a given,” Al-Adsani said.

“I think we will live through somewhere between $40 and $60 in the short term … from now until the end of the year,” he added.

Al-Adsani’s prediction is in line with projections from Rigzone’s readers.

Forty percent of the 250 voters that took part in a survey back in April stated that Brent will be worth around $60 per barrel by the end of the year, with 35 percent anticipating a price of around $50 per barrel.

Fourteen percent anticipated that Brent will climb to $70 per barrel or higher, and 11 percent outlined a more pessimistic future for the price of the commodity, expecting it to drop to $40 per barrel or below within the next few months.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist.

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James Drouin | May. 5, 2017
There will be an ‘enormous demand’ for oil in 2019-2020 ... Thats true, but only in the most limited definition of the term enormous. What is implied is that there will be an enormous increase in demand, which is simply not likely as world liquid fuel demand currently isnt even averaging a 1% per annum increase. The critical KPI to watch is gasoline consumption, which is limping along at ONE THIRD the level of 14 years ago ... should THAT show a hefty year-over-year increase, then that may change the increase in oil demand. However, gasoline consumption (the cake, icing, and side of ice cream to oil production), is a near-direct function of disposable income, and until the various world economies hit those +3% and +4% annual growth figures, then gasoline consumption will remain in the doldrums.

Philippe | May. 2, 2017
The future price of crude oil will be totally dependent on the Nat gas demand. Nat Gas is going to be the choice commodity when the green energy will not have enough sun or when the wind will be looking for that sun??? The US LTO-Shale production will control the world O&G production. It takes 30 days for a DUC to become a producing well at IP level. Presently there are more than a thousand DUC waiting to be fracked in the Permian!


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