source: The Economist
OVER the next 25 years oil demand will increase from 88m barrels a day to 99m, mainly to fill Asian petrol tanks, if planned energy policies around the world continues much as they are today. Over nine-tenths of the additional oil will come from the Middle East and North Africa, according to the International Energy Agency’s latest edition of the World Energy Outlook. The organisation reckons that the region will require $2.7 trillion of investment in exploration and production to provide the oil. Even in the Middle East, where oil is relatively easy to extract, it will be harder to get out of the ground. Average extractions costs there will increase from just over $12 a barrel in 2011 to more than $15 in 2035, as production increases by more than 17m b/d. Costs will go up far more elsewhere as high prices encourage oil producers to go after oil that is trickier to come by. The greatest leap will come in Latin America as pricey deepwater oil grows in importance.
OVER the next 25 years oil demand will increase from 88m barrels a day to 99m, mainly to fill Asian petrol tanks, if planned energy policies around the world continues much as they are today. Over nine-tenths of the additional oil will come from the Middle East and North Africa, according to the International Energy Agency’s latest edition of the World Energy Outlook. The organisation reckons that the region will require $2.7 trillion of investment in exploration and production to provide the oil. Even in the Middle East, where oil is relatively easy to extract, it will be harder to get out of the ground. Average extractions costs there will increase from just over $12 a barrel in 2011 to more than $15 in 2035, as production increases by more than 17m b/d. Costs will go up far more elsewhere as high prices encourage oil producers to go after oil that is trickier to come by. The greatest leap will come in Latin America as pricey deepwater oil grows in importance.
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