Jeremy Grantham on peak oil demand

Jeremy Grantham on peak oil demand. With slower economic growth, more fuel-efficient vehicles, hybrids, electric cars, natural gas vehicles, and possibly new technologies using fuel cells and methanol, it is certain that oil demand from developed countries will decline. Countries like China will take more dramatic and faster steps to reduce demand than we have ever thought about. Already they have 200 million electric vehicles, mostly motorbikes, as many as the rest of the world squared. Oil demand at current prices or higher is likely to peak in 10 years. At much lower prices we will lose most of our high-cost production: deep offshore, fracking, and tar sands. Oil prices will be higher than now in 10 years, but after that, who knows? The idea of peak oil demand as opposed to peak oil supply has gone from being a joke to an idea worth beginning to think about.


Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.