Loading ...
Sorry, an error occurred while loading the content.
 

Age of Oil About To End

Expand Messages
  • NHNE
    NHNE News List Current Members: Subscribe/unsubscribe/archive info at the bottom of this message. ... SHEIKH YAMANI PREDICTS PRICE CRASH AS AGE OF OIL ENDS By
    Message 1 of 1 , Jun 24, 2000
      NHNE News List
      Current Members:
      Subscribe/unsubscribe/archive info at the bottom of this message.

      ------------

      SHEIKH YAMANI PREDICTS PRICE CRASH AS AGE OF OIL ENDS
      By Mary Fagan, Deputy City Editor
      Electronic Telegraph
      Sunday 25 June 2000

      http://www.telegraph.co.uk/et?ac=000114832908976&rtmo=gwVVVZfu&atmo=99999999
      &pg=/et/00/6/25/noil25.html

      SHEIKH YAMANI, the former Saudi oil minister, has told The Telegraph that he
      expects a cataclysmic crash in the price of oil in the next five years.

      In an unprecedented personal interview, Sheikh Yamani also predicts that,
      within a few decades, vast reserves of oil will lie unwanted and the "oil
      age" will come to an end.

      In an interview with Gyles Brandreth, he says: "Thirty years from now there
      will be a huge amount of oil - and no buyers. Oil will be left in the
      ground. The Stone Age came to an end, not because we had a lack of stones,
      and the oil age will come to an end not because we have a lack of oil."

      Sheikh Yamani, who was Saudi Arabia's oil minister from 1962 to 1986 and is
      now in charge of an energy consultancy, became the public face of the
      revolutionary oil policy that altered the balance of world power in the
      early Seventies.

      He predicts that a combination of recent oil discoveries, the advance of new
      technology, and heavy investment in exploration and production will all lead
      to a collapse in the price of crude. He says: "I have no illusion - I am
      positive there will be some time in the future a crash in the price of oil.
      I can tell you with a degree of confidence that after five years there will
      be a sharp drop in the price of oil."

      Fuel-cell motor technology - which can produce electricity by combining
      hydrogen from a variety of fuels with oxygen from the air - will have a
      dramatic impact on the oil market, he predicts. "This is coming before the
      end of the decade and will cut gasoline consumption by almost 100 per cent.
      Imagine a country like the United States, the largest consuming nation,
      where more than 50 per cent of their consumption is gasoline. If you
      eliminate that, what will happen?" Saudi Arabia, he says, "will have serious
      economic difficulties".

      His remarks follow last week's agreement by the Organisation of Petroleum
      Exporting Countries - in which Saudi Arabia is the dominant force - to a
      marginal rise in production of 708,000 barrels a day in response to mounting
      concern in the US and other major consuming countries over the high price of
      oil. Prices per barrel have been hovering at around $30, compared with $10
      at the beginning of last year. But industry experts have given warning that
      Opec's latest production increase will not be enough to ease the price.

      In the interview, Sheikh Yamani forecasts that prices will stay high
      temporarily because of demand in the US and parts of Asia. But he argues
      that this price obscures the likely long-term effect of "huge" recent
      discoveries in regions such as the Caspian Sea, Yemen, Egypt and Africa. He
      also predicts that Iraq, which is capable of producing 6.5 million barrels a
      day, will become a bigger supplier before long.

      He says: "On the supply side it is easy to find oil and produce it, and on
      the demand side there are so many new technologies, especially when it comes
      to automobiles." Yamani believes that automobile engine technologies
      including fuel cells - which can produce electricity by combining hydrogen
      from a variety of fuels with oxygen from the air - will drastically reduce
      oil consumption and that, in the longer term, no one will need oil.

      His views reflect those of many in the industry, although few would go so
      far as to predict an end to the use of oil. Vincent Cable, a former chief
      economist at Shell and now industry spokesman for the Liberal Democrats,
      said: "People in the industry would not be surprised by a vision of the
      future with relatively weak prices, but punctuated by occasional price
      shocks."

      ------------

      NHNE News List:

      To subscribe, send a message to:
      nhnenews-subscribe@egroups.com

      To unsubscribe, send a message to:
      nhnenews-unsubscribe@egroups.com

      To review current posts:
      http://www.egroups.com/messages/nhnenews

      Published by NewHeavenNewEarth (NHNE)
      eMail: nhne@...
      NHNE Website: http://www.nhne.com/
      Phone: (520) 282-6120
      Fax: (815) 346-1492

      Appreciate what we are doing?
      You can say so with a tax-deductible donation:
      http://www.nhne.com/main/donations.html

      P.O. Box 10627
      Sedona, AZ 86339-8627
    Your message has been successfully submitted and would be delivered to recipients shortly.