The world could suffer an oil supply crunch by 2023, raising the risk of price spikes, because investment in exploration remains stubbornly low, experts have warned. Rising oil production from the United States will meet most of growing demand over the next three years, but after that markets could start to get much tighter, according to the International Energy Agency. In its annual oil market outlook, Fatih Birol, the agency’s executive director, said that investment in exploration and production still showed “little sign of recovering from its plunge in 2015-16”. He said that this “raises concerns about whether adequate supply will be available to offset natural field declines and meet robust demand growth after 2020”. Oil companies slashed their expenditure after crude prices plunged from highs of more than $100 a barrel in 2014 to les s than $30 a barrel in 2016, putting strain on their finances. Although prices have since recovered to more than $60 a barrel, companies have remained cautious in their spending.
Times 6th March 2018 read more »