Shell’s Voser says higher crude oil prices in the future

5 March 2010 5 March 2010

BonTrade

Royal Dutch Shell’s CEO Peter Voser sought to manage expectations for new, alternative energy sources on Thursday and predicts that crude oil will remain the dominant energy source for decades, not to mention one that will become more difficult to obtain, and hence more expensive.

Voser also addressed whether so called “peak oil” the theory, around since the 1950s, that global demand will ultimately outpace supply, has now been effectively debunked.

The CEO demurred, answering instead that despite developments in technologies such as electric cars, wind power and other alternative energy sources, “we will need conventional oil” for the foreseeable future. “We cannot switch it off, and we can make it lower-carbon.”

“I think what is dead is cheap oil,” Voser said, adding, “There is sufficient oil around,” but producers “will have to spend more to get it. … And I think you’ll see that in the end price for consumers.”