Oil industry faces crisis similar to 1970s, CGES warns

LONDON, Oct 25 (AFP) – The oil industry, faced with record high crude prices, is facing a structural crisis of the severity not seen since the 1970s when crude prices soared to unprecedented summits, an energy consultancy warned Monday.

Capacity expansion by the Organization of Petroleum Exporting Countries (OPEC) and a fall in world oil demand is needed to help to bring prices down, the Centre for Global Energy Studies (CGES) said in its latest monthly report.

“Restricting capacity expansion within OPEC, as has been the case for the last 30 years, will keep prices high until demand growth falters or the 21st century equivalent of non-OPEC oil is developed,” the London-based organisation said.

“The oil industry is facing a structural crisis of a severity not witnessed since the 1970s, with capacity shortages throughout the supply chain,” it added.
.turkishpress.com