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No Immediate Relief for Oil Producers
BP’s Energy Outlook 2016, a 20-year-forecast, shows a positive long-term outlook for oil and gas. The report states that world oil prices will most likely start slowly, before increasing in the second half of the year. However, according to BP economist Mark Finley, relief for oil producers won’t happen immediately.
Finley, whose title is general manager, global energy markets & U.S. economics, recently made a presentation at the Energy Outlook 2035 conference at Louisiana State University’s Center for Energy Studies. He said that supply and demand should begin to balance, assuming that global demand continues to increase.
“But even then, we’re not out of the woods yet,” he said. “For the market to truly rebalance you need to recalibrate supply and demand, and address all the surplus in reserves.”
