Eversheds says shortfall in Middle East oil investment could drive spike in oil prices
Eversheds Qatar managing partner Dani Kabbani has commented following news that the energy arm of the Organisation for Economic Cooperation and Development (OECD) has warned that a potential shortfall in oil investment in production in the Middle East could create a $15 (£9) spike in oil price by 2025.
Kabbani said: ‘A $15 spike by 2025 may seem reasonable but the lack of investment in the sector can drive prices even higher. Urban expansion is pushing energy-producing governments to divert gas production towards local power plants and downstream petrochemicals, thus further limiting available gas volumes.
‘Governments are aware of the importance of optimisation and investments are made to improve efficiencies; however, it is true that more gas does not necessarily mean lower prices.’
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