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edmontonjournal edmontonjournal.com 10 Sep, 2021 18:45 am

$200 oil possible if climate change policies bring on 'energy starvation,' say industry insiders

$200 oil possible if climate change policies bring on 'energy starvation,' say industry insiders
'It's something that I think many of us, if not all of us, would not like to see happening in the market' — Oman’s energy minister

The pandemic has depressed global oil demand to about 91 million barrels per day (bpd) from about 100 million bpd, according to the IEA.The agency forecasts demand will increase this year to about 96 million bpd and to more than 99 million bpd in 2022.A scenario in the IEA’s May report had demand at 24 million bpd in order to achieve net carbon neutral emissions by 2050.3 million bpd around 2040 before declining gradually over decades.

It would require cancelling short-term investments in the industry, plus a 75 per cent plummet in global oil demand, according to an International Energy Agency (IEA) outline of how to achieve the environmental goal.“The demand for oil and gas may go down but in the short-term we could see US$100 or US$200 a barrel scenario, which although it sounds very attractive today (to producers), it’s something that I think many of us, if not all of us, would not like to see happening in the market.

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