BAKU, Azerbaijan, Dec.17
By Leman Zeynalova – Trend:
In the Transformation scenario of Russian LUKOIL company, high carbon prices and inflation will lead to an increase in global oil prices to $380/bbl by 2050, Trend reports with reference to the company.
Evolution and Equilibrium scenarios set oil prices for 2050 at $128/bbl and $197/bbl, respectively.
“Setting a carbon price will contribute to the growth in the oil price for the final consumer. The cost of energy for end users in constant prices will be comparable in all scenarios, since the increase in the cost of fossil fuels will be offset by a decrease in their share in the energy mix. As a result of elevated inflation, the cost of energy for end users in the Transformation scenario by 2050 will be considerably higher than in the Evolution scenario,” said the company.
LUKOIL notes that oil prices in 2021 recovered after a sharp drop in spring 2020. The coordinated actions of the OPEC+ agreement participants allowed to stabilize oil prices at levels high enough to maintain investment activity in the oil industry.
As for demand, the company analysts say that as a result of COVID-19 restrictions, the demand for liquid hydrocarbons decreased by a record 18 mb/d in the 2-nd quarter of 2020. As restrictions are lifted, demand is gradually recovering. The oil demand in China has already exceeded the level of 2020.
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