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Analyst gave the price outlook for oil in the next five years

The price for oil will fluctuate in the range between 45 55 dollars per barrel. 

07.Dec.16 10:06 PM
By Anna Tuzova


Analyst gave the price outlook for oil in the next five years
The outlook was published by Consulting Company Roland Berger.

Its analysts make their estimates building on three prerequisites. Firstly, the production of oil that is gotten from oil shales, that had a small market share in 2009, has reached the rate of 5 million barrels per day in 2014. That time the oil output in the USA doubled and satisfies the growth of the global demand in that period.

Secondly, the type tight oil output is seemingly improves. The number of stages of hydraulic fracturing on the rigs has increased by 200 per cent in 2009-2014 as the average cost of production of such a field fell from $100 per barrel to $80.

 Finally, the improvements have lead to the drop in average shale oil prices to $50 per barrel. The authors of the research expect the continuation of the further optimization as tight oil is almost perfect competitive industry, which keeps developing under the pressure of low prices environment, according to them. 

Roland Berger suggests that with the emergence of shale oil OPEC is incapable of controlling of fuel supplies, which allows controlling prices. 

Roland Berger is the Global Consulting Company with the headquarter in Munich and it has 50 branch offices in 36 countries.

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