Printer Friendly

NEW OIL STUDY FINDS LOWER PRICES FOR REST OF DECADE

 NEW OIL STUDY FINDS LOWER PRICES FOR REST OF DECADE
 MOUNTAIN VIEW, Calif., May 19 /PRNewswire/ -- In a soon-to-be-


released study on world oil by Decision Focus Inc., a Mountain View- based spin-off of Stanford Research, average production costs worldwide will decline and prices are destined to follow for the remainder of the decade. According to the study, oil markets are shifting from domination by politics to a world where economic forces have a predominant influence. The basis for the company's projections is a computer model which simulates the supply and demand for oil in many different regions around the globe.
 "We are puzzled why many oil price prognostications remain at odds with the economic and geological fundamentals," said Decision Focus Senior Vice President Dr. Dale Nesbitt, lead author of the study. He continued, "Forecasts that are not supported by such fundamentals can cripple an industry facing chronic excess supplies, skyrocketing technological innovation and an increasingly ineffectual cartel." Contributing to the demise of the OPEC cartel is the accelerated prospects for production in non-OPEC countries, including the former Soviet (CIS) counties. The competition between OPEC and non-OPEC exports will contribute to higher volumes, shifts in global market share to low-cost producers and softer prices.
 "All this oil available at low prices is good news for consumers and bad news for conservation and the environment," added Nesbitt. The economic realities are such that just when industrialized nations are facing tough environmental decisions to reduce greenhouse gases and other emissions, oil will be increasingly attractive. Oil-based transportation will remain the fuel of choice. "It will be hard for governments to foster energy conservation," continued Nesbitt, "unless, of course, energy taxes are levied to drive up the price."
 The study concludes that revenue-hungry governments may be motivated to fill the wedge between lower upstream oil prices and current downstream and end-use prices by levying a myriad of taxes. While such taxes will tend to hold down the growth of oil consumption, they will also reduce profits from oil production.
 Decision Focus Inc. (DFI) has over 100 professional consultants working in capital-invensive industries such as natural gas and oil, electric power, transportation and telecommunications. The company's main office is located south of San Francisco in Mountain View, and most of DFI's employees hold advanced degrees in science, economics and engineering from Stanford University.
 -0- 5/19/92
 /CONTACT: Gary Ackerman or Dale Nesbitt of Decision Focus, 415-960-3450, fax 415-960-3656/ CO: Decision Focus Inc. ST: California IN: OIL SU:


MH -- DC022 -- 1926 05/19/92 14:40 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 19, 1992
Words:423
Previous Article:HOLIDAY SAFETY: PENNSYLVANIA TURNPIKE PRIORITY; MOTORISTS NEAR BREEZEWOOD CAN EXPECT MAJOR DELAYS
Next Article:MCI AND HONGKONG TELECOM BEGIN VIRTUAL NETWORK SERVICE BETWEEN THE UNITED STATES AND HONG KONG
Topics:


Related Articles
CALIFORNIA ENERGY COMMISSION REJECTS AUTO/OIL INDUSTRY STUDY CLAIMS
World's dangerously dwindling oil supply.
Challenges creating opportunities for global energy industry.
Oil prices hit new highs as winter demand bites.
OPEC UPDATE.
Cook Inlet producers are under pressure: exploration for natural gas and oil continues in Cook Inlet as current reserves dwindle.
The starvation diet: Latin America's oil producers get no windfall from war and high prices. Their problems begin at home.
Is the world running out of oil?
Cook inlet gas: a receding resource: Southcentral gas supplies are diminishing, resulting in higher prices all around.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters