• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 3 hours Rioting and Protesting
  • 1 hour Trump waves a Bible
  • 52 mins Anti-Lynching Bill
  • 9 hours Model 3 cheaper to buy than BMW 3 series.
  • 4 hours Thugs in Trumpistan
  • 10 hours Sudan Rice claims Russians are behind recent US riots
  • 11 hours National Guard kills again
  • 9 hours China to Impose Dictatorship on Hong Kong
  • 10 hours Coronavirus hype biggest political hoax in history
  • 7 hours Let’s Try This....
  • 10 hours We Are Better Than This
  • 19 hours China’s Oil Thirst Draws an Armada of Tankers
  • 10 hours Obamagate Is Not a Conspiracy Theory
  • 24 hours WHY was George Floyd Murdered and Why Publicly
Big Oil’s Race To Net Zero

Big Oil’s Race To Net Zero

European supermajors have been all…

Solar Stocks Are Leading The Energy Market Recovery

Solar Stocks Are Leading The Energy Market Recovery

Renewables stocks have outperformed the…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Price Volatility Is Set To Return

Oil markets could experience more intense price volatility in the coming years because of insufficient investment in new production, according to the head of the International Energy Agency’s oil market and industry unit, Neil Atkinson.

Speaking at a conference in Manama, Bahrain, Atkinson noted that investment is returning to the oil industry too slowly to eliminate the risk of tighter supply that would, in turn, cause price volatility even in the context of slowing global oil demand growth. Over the next five years, it is not impossible to see a return to the high oil prices from a decade ago, Atkinson said.

In its latest Oil Market Report, released last week, the IEA said crude oil demand had grown by 2.3 percent on an annual basis in the second quarter, which prompted an upward revision of the overall growth rate for 2017 to 1.6 million bpd. The revision boosted oil prices, with Brent once again above US$55 a barrel for the first time in about five months.

Atkinson noted at the Manama conference that although over the medium term the rate of demand growth will slow, it may do so from a higher point than previously forecast, in tune with the new demand growth revision. What’s more, over the longer term, to 2040, the IEA forecast the share of oil in the global energy mix will decline only slightly, from 33 percent in 2015 to 31 percent in 2040, which means stable growth in demand as part of the growth in wider energy demand.

The problem with new investments, however, remains. Bahrain’s oil minister, speaking at the same event as the IEA official, said that although prices have improved lately, they are not high enough to motivate sufficient investment in new production. Bahrain’s top oil man is not the only one warning about a possible supply crunch, but given these officials’ vested interest in the effect of supply crunches on prices, their comments are better taken with a pinch of salt.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Brandon on September 18 2017 said:
    Oil market is becoming heavily unbalanced, with global demand definitely higher than production. Investments in shale especially in the US did not (and will not) resolve US dependency from OPEC because shale oil marginal productivity is decreasing, and it just cannot be otherwise. Don't expect shale technology to become anything better than what it is today. Time has come to go back to deepwater projects I'm afraid.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News