• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 12 hours PETROLEUM for humanity 
  • 13 hours Why don't the other GOP candidates get mention?
  • 1 hour China's Blueprint For Global Power
  • 12 hours Disenfranchised people are angry people - map of global electoral systems
  • 1 hour ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 2 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 11 hours Brexit agreement
  • 12 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 18 hours Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 2 hours Erdogan Holds All The Cards ... 3.6 Million Of Them
  • 20 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 19 hours 5 Tweets That Change The World?
Economywatch

Economywatch

On EconomyWatch.com, you will find a comprehensive mix of news, analysis, reference, articles, data, charts and tools. These have been provided both by our core…

More Info

Premium Content

HSBC Report Warns we Only Have 50 Years of Oil Left

The world may have no more than half a century of oil left at current rates of consumption, while surging demand from emerging markets threatens to create “very significant price rises” before substitutes like biofuels can serve as viable alternatives, the British bank HSBC warns in a report.

“We’re confident that there are around 50 years of oil left,” said Karen Ward, the bank’s senior global economist.

The bank, the world’s second largest in assets, further cautioned that growth trends in developing countries like China could put as many as one billion more cars on the road by midcentury.

“That’s tremendous pressure on oil to power all those resources,” Ms. Ward said. Substitutes, such as biofuels and synthetic oil from coal, could fill the gap if conventional supplies fall short, but only if average oil prices exceed $150 per barrel, the report notes.

Increasingly tight global supplies, meanwhile, are likely to cause “persistent and painful” price shocks, it says.

Some oil industry observers take a more optimistic view of future supplies, arguing that

•    further development of Canadian tar sands,
•    offshore discoveries in the Arctic and
•    an expected surge in supply from Iraq

will keep oil markets well-supplied for decades.

Shale drilling has also managed to boost domestic oil production in the United States after years of decline. Yet in a clear illustration of the vulnerability of world oil markets to even minor disruptions, the unrest in Libya - which has taken a little more than 1 percent of global supply offline - is considered a key factor in the rapid run-up in oil prices since the beginning of the year.

The HSBC report further notes that even without a shortage in oil supplies, the uneven distribution of remaining energy resources will probably shift the balance of economic power globally in the coming decades.

It estimates the biggest loser in this regard will be Europe, where energy scarcity may significantly hinder economic growth by midcentury.

“They could be losing their influence on the world stage just at the time when they are most vulnerable,” the New York Times quotes the HSBC report as saying.

Source: Economywatch.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play