IDC predicts steady growth of oil prices in 2012

PanARMENIAN.Net - In its top 10 predictions for the Middle East and Africa oil and gas industry in 2012, international market research and advisory company IDC forecasts that oil prices will grow steadily this year, reaching about $130 per barrel.

This will encourage entities in the oil and gas sector to increasingly invest into unconventional resources, including oil sands, extra heavy oil, biofuels, and shale oils, the production of which grew 4.5% year on year in 2011.

"Reserves are finite, the commodity is becoming scarcer, and the peak oil theory is gaining more supporters within the industry," says Senior Research Analyst Lamia Lafdil, IDC Energy Insights. "In addition, countries like China and India are creating more demand as they develop extremely rapidly. Even though renewable energy has enjoyed solid growth, most countries will still rely on oil for their energy needs."

The global economy, and with it the oil and gas industry, is still recovering from the recession of 2008–2009, and the strength of the rebound varies from one continent to another. While the economies of the U.S. and Europe remain fragile, developing Asian economies have been bouncing back strongly. Oil demand has risen in emerging economies, and it is forecast that global demand will be driven by these markets in the near future.

"The oil and gas industry has faced a number of challenges over the last few years, including a global recession and supply disruptions caused by the Arab Spring. However, it seems that the worst is over," says Lamia Lafdil. "The industry is marching towards years of growth, both in demand and supply, and will be characterized by huge investments in technology, especially in the smart field area."