Oil price predicted at USD 100/barrel by 2020
According to Anatoly Zolotukhin, deputy chancellor of International Affairs at the Gubkin Russian State University of Oil and Gas, oil prices are expected to reach USD 100 per barrel by 2020 but not exceed this level. Zolotukhin told Anadolu Agency in an interview he sees “a very bright future” for the oil sector.
“Oil prices are low now. We know that and everybody is talking about alternative sources,” he said. He disputed geopoliticians who maintain that the era of oil is ending. “They are saying that this is the end of the oil, and in 20-30 years, this source will not be required because alternative sources of energy are coming onstream which will replace everything that is just depleting now,” the Russian professor stated. Although alternative energy is a very important source of energy, he argued that alternative energy sources cannot replace the requirements of the petroleum industry because coal, oil and gas will still take the majority share, 75 percent, from the total energy basket in the foreseeable future, meaning 35 years plus from now. “When we look 50 years ahead, we know the impacts, we know the weak points about petroleum. We know how to cope with the problems,” the professor added. He maintained that although more investments are needed in the industry, the investment in 2017 superseded those made last year.
Anatoly Zolotukhin underlined that despite the current oil price volatility, he expects that prices will be around USD 100/barrel by 2019 or 2020, but will not surpass this amount.
Recently, the International Energy Agency (IEA) also announced that it foresees crude oil prices rising sharply by 2020 due to falling investment in new oil projects.