Oil prices likely to stay

By GYNNIE KERO
GLOBAL oil producers including firms focused on Papua New Guinea have been urged to adjust to the US$50 to US$60 (K156 to K188) a barrel over-time instead of expecting the oil price jump to US$100 (K313) a barrel.
Facts Global Energy (FGE) chairman Dr Fereidun Fersharaki said the oil price range on global market has always been between US$50 to US$60 dollars a barrel.
Fersharaki told participants at the inaugural PNG Petroleum and Energy summit in Port Moresby yesterday not to use the US$100 dollars as an index when making decisions.
“I know when price was $100 a barrel, revenue was very high,” he said.
“But the reality is that five years ago, the price of oil was US$50 a barrel and everybody was happy.
“Oil producers were happy.
“It (oil price) went to $100 and came back to $50 and you are all not happy.  We now need to adjust our thinking that in the long term, price of oil is in the range of $50 to $60.
“Let’s not think about when we get back to $100. That was an aberration, not a norm.
“If we plan on the $50 to $60 range and with the help of Opec (Organisation of Petroleum Exporting Countries) and Saudi Arabia we can stabilise a boundary for prices and make investment decisions that we cannot make at the moment. I am optimistic that today with 90 per cent compliance rate in Opec, things can work out.”