Michael Economides, professor at the University of Houston, comments on supply and demand for oil. He spoke at an International Association of Independent Tanker Owners conference in London today.
“Headlines ruled the price of oil for several years but there are some underlying facts that support the price of oil.”
Venezuela, Nigeria and Iraq are under-producing, he said.
“There are problems out there for the production of oil. China has gone berserk. There’s no other country in the history of mankind that increases consumption by 20 percent a year. I’m personally surprised that the price of oil hasn’t already hit $100 a barrel.”
“I think $100 is around the corner. There are no alternatives to hydrocarbon energy sources in the near future.”
“Natural gas will be used for transportation in a massive way. There’s going to be a globalized gas market, spot market.
China is “going to show us in the west the reality of the importance of energy in the modern world.”