Sunday, February 18, 2018

Unwise to wait for higher oil prices*

New BP study suggests

A tug boat at the Trinidad Offshore Fabricators Unlimited (TOFCO) facility in La Brea, gets ready to transport the topside of the Juniper offshore gas platform.

The strategy to borrow today for what the country cannot afford tomorrow in the hope of a future higher oil price, is unwise, a new study by BP plc suggests. The London-based oil and gas giant, parent company of Trinidad and Tobago’s largest oil and gas producer, bpTT, released the study last week (Jan. 15).
“Peak oil demand and long-run oil prices” by BP Chief Economist Spencer Dale and Director of The Oxford Institute for Energy Studies Bassam Fattouh said: “Peak oil demand is all the rage.” What is peak oil demand? Dale and Fattouh said: “The prospect that global oil demand will gradually slow and eventually peak has created a cottage industry of executives and commentators trying to predict the point at which demand will peak.”

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