Brent Crude Oil Futures fell lower last night (December 5th) by one per cent at $108.70 per barrel on news production of the commodity is set to rise and fall.
The University of Aberdeen has found that there remains potential from the UK Continental Shelf, with both oil and gas production expected to increase between now and 2015.
But this rise is due to give way to longer-term decline in production over the coming three decades – and this slide is thought to be brisk.
Professor Alex Kemp of the Scottish university stated that between 2014 and 2013, the number of new oil fields coming into production does not balance with the number reaching the end of their economic lives.
He stated: "On current trends and performance, the ultimate potential will not be achieved over the next 30 years or even by 2050 when 17.5 billion barrels could be produced."
Find the latest CFD strategies for the commodities market at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.