World oil demand is expanding at its fastest pace in five years thanks to rebounding economic growth and low prices, but global oversupply will last through 2016, the West's energy watchdog said on Wednesday. The International Energy Agency said in a monthly report that it was steeply raising its demand growth outlook for this year and 2016, and expected non-OPEC supply growth to decline next year, with U.S. producers hardest hit.This is an important story. At least a few Saudi princes said addiction to oil was like addiction to illicit drugs. Bring down the price of oil to levels where demand would grow again, reinforcing the addiction. If the story is accurate, the Saudi princes look like they are correct.
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Musings
Musings: A Retrospective View of A Restructured Energy Industry. Link here.
Using our time machine, we ventured to 2025 where the global oil and gas industry is enjoying its fifth year of the “new normal” – crude oil prices were settled in the $95 a barrel range. Luckily for the industry, demand for its oil continued to grow, albeit ever so slowly. The steady growth since 2020 of 250,000 barrels a day represented an environment some are starting to call “boring.”
That may be a welcome respite for managers following the volatility of the first 20 years of this Century and the toll it took on companies, technology and investment. Countries have become less fearful of oil shortages now that renewable fuels supply a significant share of the world’s energy needs and electric power generation. In developed economies, crude oil is essentially reserved for transportation fuels, but even then, the increased penetration of green fuels, electric vehicles and social attitude changes toward the use of vehicles and mobility in general have limited the growth of hydrocarbon-based transportation fuels.
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