Oil to be priced at $15 in the future-I: Emerging market demand will not break the fall in price
In an uncertain world, energy pundits get the cushion to come up with all kind of theories. 8There is now a new argument that the increase in energy demand in emerging economies (in particular, in India, China and Africa) would prevent the displacement of oil and a subsequent decline in oil prices. 8In the forseeable future, the oil market will be completely transformed as the result of a technological revolution in transportation, the argument goes. 8The displacement of motor vehicles by electric vehicles would take away the special role oil has enjoyed over transportation since World War II. The elasticity of oil demand would increase as it would have to compete with coal, natural gas, nuclear and renewables on the energy market. 8Oil could become the new coal and oil prices could converge to the level of coal and natural gas, 8The paper provides a very credible argument to claim that the price of oil will be at $15/bbl at 2015 prices 20 years from now.Click on Report for more.