Global trends: low oil prices today may not mean low investment tomorrow

Vienna, Dec. 4, 2015 Saudi Arabia’s Minister of Petroleum Ali al-Naimi speaks to reporters before the start of the 168th meeting of the Organization of Petroleum Exporting Countries (OPEC); oil ministers showed no inclination to pump less to ramp up prices (source: dpa)
Vienna, Dec. 4, 2015 Saudi Arabia’s Minister of Petroleum Ali al-Naimi speaks to reporters before the start of the 168th meeting of the Organization of Petroleum Exporting Countries (OPEC); oil ministers showed no inclination to pump less to ramp up prices (source: dpa)

Today’s relatively low price of oil seems to have reconciled the otherwise conflicting interests of the world’s largest producers and consumers. Organizations representing these two groups have warned of negative repercussions, including a price spike that could follow from lower investment. However, the relationship between oil prices, investment and future supply is not so straightforward.

<i>This report is part of GIS’s “Global Trends” series, which aims to forecast big-picture scenarios that will shape the world this year and beyond.</i>

Though they usually represent opposing interests, the Organization of Petroleum Exporting Countries (OPEC) a...

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