Money Markets
Opec likely to maintain current oil output
Fuel prices in Kenya are likely to go up although international oil prices are unlikely to rise further because output is meeting demand. Photo/FILE
Posted Wednesday, November 18 2009 at 00:00
“The most reliable and liquid currency is still the greenback. Moving away from the dollar may not necessarily be the final solution.”
Existing oilfields
On the issue of global supplies, Tanaka said existing oilfields are close to hitting a supply peak, and offsetting these decline rates would require massive investments, although underground resources remain ample.
“Peak oil exists for current fields in production, and decline rates will get worse through to 2030. But underground, unconventional sources like shale, oil sands are sufficient, if you pump in enough money. It all depends on the price,” he said.
He dismissed suggestions by a report in UK newspaper The Guardian last week, citing a whistleblower at the IEA, that the agency was deliberately underplaying a looming oil shortage.
“That article says we are too complacent. That’s not true. In fact, we have been quite alarmist about the necessity of putting huge investments into potential, new fields.”
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