Long term outlook for world oil markets

Journal Article · Thu Jun 30 04:00:00 EDT 1994 · Energy Detente; (United States)

OSTI ID:6757547

Projections of the future supply/demand balance indicate that the uncertainty for all participants in the world oil markets grows very rapidly after the turn of the century. Since oil will continue to be the residual fuel and OPEC will remain as the residual supplier of oil, the brunt of this uncertainty falls on the shoulder of OPEC and oil companies who have to commit capital in E P activities to generate capacity. The higher the degree of uncertainty on financial returns to energy-related investments, the greater the risk for supply interruptions, price volatility and dislocations in the world economy. Any policy initiative by the governments of the producing countries and of the major consuming countries or by both in cooperation with one another aimed at reducing uncertainty and increasing transparency should contribute to a better investment environment and should be helpful in augmenting other attempts to reduce or avoid harmful price volatility in the future.

• OSTI ID: 6757547
• Journal Information: Energy Detente; (United States), Journal Name: Energy Detente; (United States) Vol. 15:12; ISSN EDETDB
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290201 -- Energy Planning & Policy-- Economics-- (1992-)
292000* -- Energy Planning & Policy-- Supply
Demand & Forecasting
294002 -- Energy Planning & Policy-- Petroleum
ENERGY SOURCES
FORECASTING
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
PETROLEUM
PRICES
SUPPLY AND DEMAND