According to the International Energy Agency, China energy demand could rise some 75% over the next 25 years… and if supply fails to keep pace, prices will rocket.
And much of that demand could come from China’s transportation sector, where car demand could rocket tenfold by 2035.
According to the Financial Times, “Global oil demand will increase 18 per cent to 99m barrels a day in 2035, from 84m a day in 2009, the report states. Oil supply, including production of oils not classified as crude, “comes close” to reaching a peak by 2035, driving prices up to $113 a barrel in 2009 terms, from around $86 a barrel today, according to the watchdog. In nominal terms, prices will more than double to $204 a barrel it predicted.”
As for these predictions of $300 oil… well, let’s just hope it doesn’t happen.
Whether you believe these predictions or not, keep this in mind. Speculation of these gargantuan numbers alone will send oil-related companies, especially domestic oil company stocks, to great heights. Heck, Brigham (BEXP) is rallying to new highs as we speak.