Thursday 12 May 2011

‘Sustainable’ Oil Price Is $70 to $80, Saudi OPEC Governor Says - Bloomberg

Saudi Arabia’s governor to OPEC refuted forecasts that the world is running out of oil and said the “sustainable” long-term price is $70 to $80 a barrel.

“Contrary to some oil pessimists -- because there has been talk of oil peaks -- the world’s oil resources have actually increased,” Majid Al-Moneef, Saudi Arabia’s governor to the Organization of Petroleum Exporting Countries, said today in Brussels. “That’s despite cumulative production that was close to 500 billion barrels. So the message is that the resource base is plentiful. So the future is still potentially promising.”

Oil producers aren’t constrained by supplies or extraction technologies, Al-Moneed said. “The problem is not oil underground,” he said. “It’s the investment climate needed.”

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