The era of cheap oil is coming to an end, claim Norwegian risk managers at DNV. The firm’s Technology Outlook 2020 report says that in the last 25 years, only one barrel of oil has been discovered for every four barrels used. With global energy demand forecast to rise 19% by 2020, companies will be driven to find more costly, lower quality and unconventional oil sources.
Speaking at the Offshore Europe conference in Aberdeen, Elisabeth Harstad at DNV said: “Oil and gas, as well as coal, will continue to dominate the global energy mix over the next decade, but the age of cheap oil is coming to an end.”
She said that the development of new technology would need to be fast-paced to keep up with new challenges facing the industry, but added that “much of what will characterise 2020 is already in the labs or on the drawing boards.”