Cheap oil is gone for good
A recent document added to the library of the DWS Global Financial Institute points out that investors should look to renewables and clean-tech as the global oil supply becomes scarcer from 2020.
Among the key changes the DGFI research points to includes:
– By 2020 oil will become scarcer but demand for energy will increase.
– Global oil production stability depends upon 30 countries.
– Further political unrest in producer countries could temporarily restrict oil output.
– To quell unrest some governments are providing the domestic population with unsustainably low cost oil.
– Data suggested that once ‘peak oil’ (the maximum level of oil production) has been reached, the global economy will face a prolonged oil crisis.
– Investors can benefit from the long-term trend towards more efficiency, renewable energy and clean technology.
– Oil prices- never before in the 21st century has the oil price been so volatile- the era of cheap crude oil (below $30) is gone for good.
To read the full research document click here: [asset_library_tag 5071,White Paper: Peak Oil]