Analysis: Optimism Prevails Over Oil

(UPI) — The closure of BP`s Prudhoe Bay oil field in Alaska led petroleum prices to spike more than $2 per barrel Monday, but the shock of shutting down the biggest oil field in the United States is likely to abate within a matter of months. What`s more, the despite ongoing turmoil in the oil-rich Middle East, the longer-term outlook for the global energy markets is likely to be strong, as supply is expected to meet demand, even as it continues to increase worldwide.

That`s according to the latest report by the Cambridge Energy Research Associates, a private energy consulting group based in Cambridge, Mass. In its study released Tuesday titled ‘Global Liquids Capacity to 2015,’ the research group concluded that energy capacity across the world could increase by as much as 25 percent from current levels by 2015, particularly as unconventional sources such as gas-related liquids and extra-heavy oils are developed more rapidly.
M&C News