BP presents for Azerbaijan new forecasts

Baku. 12 May. REPORT.AZ/ Chief Economist of BP Group, Spencer Dale met with Azerbaijani Minister of Energy Natig Aliyev for granting him a report "Review of Energy Perspectives" for year 2016 released by BP. Report was told in the press service of the ministry.

According to the information, the report includes long-term energy trends, forecasts of world energy markets over the next 20 years.

During the meeting, discussions were held on last situation in the global energy market. It was noted that the process of settlement of the oil market will be completed by the end of this year. BP Group Chief Economist predicted the oil price growth in the next 3-5 years.

The expert believes that the reduction in investments in the oil sector by 35% in comparison with the year 2014 will have further impact on sales in the markets, which will inevitably lead to an increase in oil prices. According to him, in the next 10-20 years increase in demand for crude oil and higher prices is expected.

Especially was noted the potential impact on the price of oil transformation processes in Saudi economy - a significant helper energy market.

Energy Minister Natig Aliyev said that the production at low prices would be undesirable also for countries such as Saudi Arabia, Iran and Libya that seeking to increase oil production: "Most likely, the price of oil will be set at around $50/barrel. Return to price of $ 100/ barrel shouldn't be expected."

According to BP forecasts, the gas market will see an increase in demand and prices. The desire of many countries to replace coal with gas and decline of gas production in Europe will lead to an increase in its dependence on imported gas to 75%.

N.Aliyev said that in contrast to forecasts that Europe's consumption of natural gas will reach 500 billion cubic meters, and by 2030 this figure will grow to 300 billion cubic meters, at the moment, decline in consumption is observed. The minister did not rule out that a gradual transition to the use of electricity in the engineering industry in developed countries will lead to changes in the energy balance in the near future.