WEC Survey: Energy Execs See Oil in $60-80 Range for 5 Years

[TransitJohn]

WEC Survey: Energy Execs See Oil in $60-80 Range for 5 Years

by James Herron Dow Jones Newswires Monday, June 04, 2007


LONDON, Jun 4, 2007 (Dow Jones Newswires)

Senior energy executives don't expect oil and gas prices to increase dramatically in the next five years, but the political risk attached to them means coal and nuclear power will become an ever more important part of the global energy mix, a survey from the World Energy Council published Monday showed.

Out of a survey of 50 senior executives from major global energy companies and their strategic suppliers conducted over the last 18 months, more than 65% of those surveyed expected the oil price to remain in the $60-80-a-barrel range for the next five years.

Respondents saw some stability within this range. Just 5% believed oil prices would rise above $80 a barrel, and less than 30% said it would fall below $60 a barrel.

Growth in demand from the developing world was seen as the principal factor supporting the oil price. "Global demand is directly linked to China's growth. China shows no sign of a slowdown, and in an interconnected market, we will all feel the impact," said one executive. Energy consumption in western countries is expected to grow more conservatively.

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