{"id":15762,"date":"2015-12-29T12:46:50","date_gmt":"2015-12-29T17:46:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15762"},"modified":"2015-12-29T13:06:14","modified_gmt":"2015-12-29T18:06:14","slug":"10-trillion-investment-needed-to-avoid-massive-oil-price-spike-says-opec","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15762","title":{"rendered":"$10 Trillion Investment Needed To Avoid Massive Oil Price Spike Says OPEC"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/10-Trillion-Investment-Needed-To-Avoid-Massive-Oil-Price-Spike-Says-OPEC.html\" target=\"_blank\">$10 Trillion Investment Needed To Avoid Massive Oil Price Spike Says OPEC<\/a><\/h3>\n<div class=\"share-buttons\">OPEC says that $10 trillion worth of investment will need to flow into oil and gas through 2040 in order to meet the world\u2019s energy needs.<\/div>\n<div class=\"column75-25 clear\">\n<div class=\"column75-25_1\">\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>The OPEC published its\u00a0<a href=\"http:\/\/www.opec.org\/opec_web\/static_files_project\/media\/downloads\/publications\/WOO%202015.pdf\">World Oil Outlook 2015<\/a>\u00a0(WOO) in late December, which struck a much more pessimistic note on the state of oil markets than in the past. On the one hand, OPEC does not see oil prices returning to triple-digit territory within the next 25 years, a strikingly bearish conclusion. The group expects oil prices to rise by an average of about $5 per year over the course of this decade, only reaching $80 per barrel in 2020. From there, it sees oil prices rising slowly, hitting $95 per barrel in 2040.<\/p>\n<p>Long-term projections are notoriously inaccurate, and oil prices are impossible to predict only a few years out, let alone a few decades from now. Priced modeling involves an array of variables, and slight alterations in certain assumptions \u2013 such as global GDP or the pace of population growth \u2013 can lead to dramatically different conclusions. So the estimates should be taken only as a reference case rather than a serious attempt at predicting crude prices in 25 years. Nevertheless, the conclusion suggests that OPEC believes there will be adequate supply for quite a long time, enough to prevent a return the price spikes seen in recent years.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Top-10-Oil-And-Gas-Stories-Of-2015.html\"><strong>Related:\u00a0Top 10 Oil And Gas Stories Of 2015<\/strong><\/a><\/p>\n<p>Part of that has to do with what OPEC sees as a gradual shift towards efficiency and alternatives to oil. The report issued estimates for demand growth five years at a time, with demand decelerating gradually. For example, the world will consume an extra 6.1 million barrels of oil per day between now and 2020. But demand growth slows thereafter: 3.5 mb\/d between 2020 and 2025, 3.3 mb\/d for 2025 to 2030; 3 mb\/d for 2030 to 2035; and finally, 2.5 mb\/d for 2035 to 2040.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>$10 Trillion Investment Needed To Avoid Massive Oil Price Spike Says OPEC OPEC says that $10 trillion worth of investment will need to flow into oil and gas through 2040 in order to meet the world\u2019s energy needs. The OPEC published its\u00a0World Oil Outlook 2015\u00a0(WOO) in late December, which struck a much more pessimistic note [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1996,6344,353,588,1729,592,595,600,1160],"class_list":["post-15762","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-capital-expenditures","tag-energy-demand","tag-gdp","tag-oil","tag-oil-and-gas-industry","tag-oil-price","tag-oil-production","tag-opec","tag-population-growth"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15762"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15762\/revisions"}],"predecessor-version":[{"id":15764,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15762\/revisions\/15764"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}