HOUSTON: The majority of oil and natural gas executives think that oil prices could rise to $90 a barrel before triggering a global recession, according to a survey released yesterday by Deloitte & Touche USA.
World oil prices struck a record above $78 a barrel earlier this year, sparking widespread worry that high energy costs could damage the economy. Prices have since retreated to around $60 a barrel.
The poll of 100 energy executives also showed that more than 80% of energy executives expect the price for a barrel of benchmark West Texas Intermediate crude to be between $60 and $70 per barrel by December 2007 –roughly in line with this year’s range.
Some 57% of the executives think that oil prices could rise to $90 a barrel before triggering a worldwide recession.
Renato Bretani, president of Petrobras Americas, said oil prices ranging between $50 and $65 a barrel are high enough to encourage companies to find and develop new energy sources, but low enough to protect economic growth.
“Oil at that level is sustainable,” Bretani said.
“It will allow these other resources like biofuels and oil sands to come in,” he said during a panel discussion at a Deloitte-sponsored energy conference in Houston.
The executives in the survey said they are most frustrated by geopolitical turmoil and government policies that limit their access to supplies.
Peter Robertson, vice chairman of Chevron Corp, said more areas for oil and gas production have been found around the world, but it’s harder to reach them due to political restrictions.
“The pie’s bigger, but sharing it is complex,” Robertson said at the Houston conference. “There are just parts of the world that are off-limits.” – Reuters |
