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Oil may cross $100/bbl in 2019: Know why
May 14: A new kind of argument is floating around that the price of crude will get to the $100/bbl in 2019
8Lack of investments and the lack of spare production capacity in the world in the face of booming demand will push prices sharply up
8The demand and supply of oil are inelastic in the short run and small inequalities can cause big changes in the price of crude
8Also, it is argued that the marginal barrel of oil will cost more from now, as no major super fields have been discovered since the 30 billion barrel pre-salt find in Brazil.  Such big fields can now only be found in offshore areas around the world.
8What is more, In 2017, companies did not invest in offshore exploration as the risk of not finding oil and drilling dry holes is not priced at current prices.  A list of findings from offshore exploration seems to show how risky the exploration business is. The industry clearly needs higher oil prices in order to justify further exploration, not just the developing risk of the marginal offshore barrel, to fill the looming supply gap.
8In fact, in 2017 the industry reached a record low discovery rate of conventional, non-shale resources, making it harder to address the supply gap going forward.
8On the demand side, neither the advent of the electric car or renewable energy is likely to dent the increasing appetite for oil anytime soon.
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