A fresh overview
In this extra-large fresh update, covering most of last month, we can observe the astonishing speed with which the state of affairs in the international oil industry is changing.
Geopolitically these are exciting times, as long-standing balances are altered and new partnerships are appearing
based on different common interest than before.
Adding to this is a greater assertiveness of certain emerging economies in stating their rights and needs and wishes
and taking a greater hand in their own development.
At the same time it is said in high places that “the market is oversupplied and overpriced” whilst from
another knowledgeable source it is heard that the current speculation-bubble adds up to 30 dollar the barrel and that
it is time ways are being sought to deflate this.
An increasing awareness to the dwindling reserves and the need for alternatives is also being seen, giving rise to a
belief in a partial transition to biofuels, coal to liquids, gas-to liquids and the like, possibly reducing the
expected growth in demand for oil.
Whilst being very useful, it may not be the solution that is really needed.
Many emerging economies are behind in energy-efficiency and the need for improvement is becoming clear and starts to
take effect in policies and demand-curves. Other places are just using too much energy.
But we may need to look deeper and examine calculated expected demand in the future and see how realistic this is against the expected resource state of affairs in the future. And also: how are we going to tell it to our kids?
Alexander
alexander@gas-oil-power.com
