While the IEA’s modeling suggests a rebound in oil prices to $80/B by 2020, the agency’s executive director Fatih Birol speculates as to the likely effects of an extended period of lower prices.

“If oil prices remain at about $50/B, light tight oil in the US will decline by about 2.5 mn b/d by 2020…If $40/B [by] around 3 mn b/d,” he says, adding that “in order to get profitable projects in the US, you need prices between $60-70/B.” (CONTINUED - 337 WORDS)