| At around $80 a barrel in 2020, the market is expected to balance. But higher prices will bring back a rise of tight oil production and we could see a repeat of what is going on now. IEA’s Executive Director Fatih Birol, said that overzealous capex cuts in response to low oil prices could sow the seeds of a future oil price spike where IEA expects upstream investment “to be at least 20 per cent lower than last year [and] continue to decline next year”.
He added that in the next ten years “the amount of money we need just to compensate decline at existing fields is in the level of $650 billion, because decline rates are becoming steeper.”..............................................Full Article: Source
|