16 October 2017, Sweetcrude, Lagos — With increasing attention on renewable energy, oil prices may be forced down to $10 within six to eight years, according to an expert.
Chris Watling, Chief Executive Officer of Longview Economics, in a live interview with CNBC, said another key reason for the crash would be Saudi Aramco’s initial public offering, IPO, planned to hold in the second half of next year.
“I think they (Saudi) need to get it away quick before oil goes to $10 (per barrel),” he said, adding: “What happens with electric vehicles is really important,” he said.
He said the case of electric cars was important because “about 70 percent of oil is used for transportation.
In June 2014, oil prices relapsed from almost $120 a barrel due to weak demand, a strong dollar, and booming U.S. shale production.
Mr. Watling said things were changing and that people might shift attention to alternative energy sources.
“We forget, don’t we? I mean 120 years ago the world didn’t live on oil. Oil hasn’t always driven the global economy… The point is alternative energy in some forms is gathering speed (and) things are changing,” he added.
The Longview Economics CEO forecast the price of oil would ultimately slump to $10 a barrel over the next six to eight years.