Oil sector faces investment crunch – Gazprom CEO

PORTO CERVO, Italy (Reuters) – A shortage of oil and gas investment means the sector will fail to meet demand when the global economy begins to recover, Gazprom Chief Executive Alexei Miller said on Wednesday.
There are no guarantees that further increases in oil demand will be supported by a sufficient growth in investments, the head of the Russian natural gas giant said.

Nobody has solved the issue of the “2012 supply gap” which may emerge later than thought but which will be deeper.

“It means prices may even jump over the $250 hurdle we have forecast a year ago,” Miller said in a written text of a speech at a conference in Italy on the financial crisis and energy.

“Expectations remain that trimmed capital expenditure programmes of international oil majors caused by the high volatility of the crude oil market will reduce production capacities and oil supply on the market in three to five years,” Miller said.

Reuters