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Page added on February 10, 2016

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BP predicts oil will peak again at $100

The oil sector may be in the doldrums – but BP can see light at the end of the tunnel and has predicted that the oil price could even return to $100 a barrel again.

Oil has tumbled 70 per cent in the past 18 months to around $30 a barrel and operators have been forced to cull costs in one of the worst downturns in the history of the industry.

However, BP’s chief economist Spencer Dale said he sees ‘light at the end of the tunnel at the end of this year. I look at the simple economics of demand and supply and we will get a shift’.

Hopes: BP chief executive Bob Dudley said he expects energy consumption to be ‘up about a third on today'

Hopes: BP chief executive Bob Dudley said he expects energy consumption to be ‘up about a third on today’

He described $100 as ‘unusually high’ but said prices will move ‘in the middle somewhere’ between $30 and $100 and that ‘something will happen to make prices spike up again’. That could mean $100 a barrel will again be a reality.

Dale, who has produced BP’s annual Energy Outlook, predicts global oil demand – which grew by 1.8million barrels a day last year – will continue to grow strongly, largely driven by growth in emerging markets and demand for cars, which will double in 20 years.

BP chief executive Bob Dudley, said he expects energy consumption to be ‘up about a third on today – that’s like adding two more USAs to present consumption’.

Dale added: ‘Unless the global economy grows far more slowly than anybody thinks, you will get material growth in energy demand over the next 20 years.’ He said fossil fuels will still provide 80pc of total energy supply in 2035.

Africa-focused Tullow Oil is prepared for the worst and said it can cut its 2017 spending by another 72pc to £207m if oil prices remain weak, just a fraction of the £1.5bn it spent in 2014.

Tullow’s shares tumbled 11.6p to 149.9p yesterday when it revealed a £750million annual operating loss – its second year of losses – but an improvement on last year’s £1.4billion loss.

thisismoney.co.uk



15 Comments on "BP predicts oil will peak again at $100"

  1. Davy on Wed, 10th Feb 2016 5:57 pm 

    “Could Gasoline Drop Below $1 Per Gallon?”
    http://oilprice.com/Energy/Oil-Prices/Could-Gasoline-Drop-Below-1-Per-Gallon.html

    “GasBuddy says that gasoline supplies are rising in the Midwest, which could result in localized gluts for product, pushing prices down to $1 per gallon or even lower. With access to heavily discounted Canadian crude, Midwest refiners are churning out cheaper and cheaper gasoline. “That could trigger fire sales—very quick and low price sales,” Patrick DeHaan of GasBuddy told the WSJ. There is a “strong possibility” that refiners, trying to offload excess winter fuel blends, could discount prices down to 99 cents per gallon for a brief period of time.”

  2. makati1 on Wed, 10th Feb 2016 7:59 pm 

    Bullshit and pep talk to keep the oily investors from jumping the sinking ship of oil. $100 oil will take down the world economy in short order. Then it will not even be for sale at $10.

  3. Truth Has A Liberal Bias on Wed, 10th Feb 2016 8:01 pm 

    Obviously Dale never read the Etp model and has no idea that $100/barrel would break the laws of physics lol

  4. Apneaman on Wed, 10th Feb 2016 9:38 pm 

    BP CEO Bob Dudley makes a nice living telling the shareholder sheep what they want to hear. Feel good emotions trump real world results every time. Feed the greed Bob, it’s bonus time soon.

    BP CEO gets 25% pay rise while profits drop
    Published time: 4 Mar, 2015 16:21

    https://www.rt.com/business/237617-bp-dudley-remuneration-rise/

    BP CEO gets $12.74 Million Pay Check

    http://www.maritime-executive.com/article/bp-ceo-gets-1274-million-pay-check

    Soon as they figure out how to put a suit and tie on an algorithm, Ape CEO’s will be phased out. Sky Net don’t need ya Bob.

  5. twocats on Wed, 10th Feb 2016 10:30 pm 

    Sooooo, sometime in the next 20 years oil will be $100 a barrel. And he literally calls for a range of between $30 and $100 for that time period. So even the $100 is like a temporary spike due to some event, like a war. I mean, this is pure spin. This article was bad news this morning, and then this evening its spun as good news. Well, the good/bad news is humans are powned because they are story-tellers and can tell themselves any fracking story they want to in order to make the nightmares go away and so will never solve their problems and will be consumed in a global extinction event of their own making.

  6. Boat on Wed, 10th Feb 2016 10:55 pm 

    twocats,

    You doomers should write bible. You spread the fear of extinction to play on peoples minds as well as preachers.

  7. Apneaman on Wed, 10th Feb 2016 11:13 pm 

    Boat, there’s a difference, The preacher’s story is based on a bronze age nomadic god. Extinction is the rule on this planet and the evidence is clear – the same thing is happening again except at a much quicker pace than any other time. And we got all that nuclear shit to deal with too. Another first. There are reams of easily obtainable scientific literature on extinction Boat. Google it or ask an adult.

  8. Boat on Wed, 10th Feb 2016 11:55 pm 

    Apeman,

    Pakistan could commit Jihad by nuking a dozen or so cities and put the world in climate freeze. You never seem to mention that fear. How do you pick through your fears and decide what to promote for the day. Is it a complicated process?

  9. GregT on Thu, 11th Feb 2016 12:09 am 

    Boat,

    A dozen or so nukes would not put the climate into a freeze. That would likely not even cause a minor blip in continued global warming.

  10. GregT on Thu, 11th Feb 2016 12:13 am 

    “You doomers should write bible.”

    Bible already writed Boat. For long time now.

  11. Boat on Thu, 11th Feb 2016 1:00 am 

    GregT,
    Once again you need to read more. Suggested topics. Nuclear winters. Typical sizes of modern nuclear weapons. Size of worlds top 15 cities. After reading let me know and I will help you put it together.

  12. shortonoil on Thu, 11th Feb 2016 7:40 am 

    “Obviously Dale never read the Etp model and has no idea that $100/barrel would break the laws of physics lol”

    We know that BP’s engineers have, but Mr. Chief Economist probably doesn’t listen to the engineers. What else is new?

    http://www.thehillsgroup.org/

  13. PracticalMaina on Thu, 11th Feb 2016 12:03 pm 

    I can lie just as well as that man, and wear a suit. $16,000,000 salary, please and thank you!

  14. Dredd on Thu, 11th Feb 2016 5:26 pm 

    BP scientist sees deepwater in Australia on the horizon (Questionable Scientific Papers – 6).

  15. Kenz300 on Fri, 12th Feb 2016 8:54 am 

    BP lost its way when it quit moving BEYOND PETROLEUM.

    When they changed management and made a 180 away from alternative energy they made a huge mistake…..

    All fossil fuel companies need to change their business models and become “ENERGY” companies by embracing the future of alternative energy sources like wind and solar.

    Fossil fuels are poisoning the air, land and water we all need to survive.

    Fossil fuel companies will not survive if they do not change.

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