by Travis Johnson, Stock Gumshoe | November 7, 2011 5:05 pm
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Do you think the world wide demand for oil will increase over the next year, despite the worsening recession?
Over the next few years, I think we will face supply problems because of neglected, aging refineries around the globe. When might this effect be noticed?
Are you familiar with Falcon Oil and Gas Exploration Company (FOLGF), and the related PetroHunter (PHUN)?
Best,
Ed
I’m not personally familiar with those two.
I think demand for oil will continue to increase gradually for the next 10-20 years as alternatives continue to be gradually explored and implemented. I don’t know what will happen over the next year, but I don’t assume the recession is worsening — I think the economy is staying weak but not necessarily getting worse, particularly if you consider the entire globe. Refinery infrastructure in developed countries is certainly aging, but while we aren’t building new refineries we are certainly expanding existing ones and further centralizing refinery capacity in certain regions of the country here, and refinery capacity globally should actually be picking up considerably over the next few years as the oil producing countries (particularly in the middle east, but elsewhere too) aim to diversify their economies and sell more refined products and chemicals instead of selling just crude oil.