Southern Pacific Resource Corp STPJF

Brent crude will average $130 a barrel next year

[LeGagneur]

As IEA has stated. peak Oil regarding convetional oil already has happened. In fact the decline rates from the existing conventional oil fioelds today is some 6% annually. That is if the necessary investmenst are made in order to maintain a certain basic level of activity in these declining fields. If not well then the expected decline rates from existing filds is not 6% but 9% as outlined by the IEA analysis of the world oil production market.

https://www.youtube.com/watch?v=iKkISqOCnVA

Then we also have all the oil producing countries that in fact need a certain minimy oil price level or they will face problems financing their economies:

Riyadh: Saudi Arabia may start cutting oil output ‘much sooner' than it did after the financial crisis in 2008 because it now needs crude prices of at least $85 (Dh312.2) a barrel to pay for spending, Sanford C. Bernstein & Co said.
https://gulfnews.com/business/oil-gas/saudi-need-for-oil-at-85-may-speed-cutback-1.850907

Add to that then the fact they can not increase production to any significant extent going forward:

Saudi Arabia, the world's biggest exporter of crude, is consuming more of its own oil than ever, eroding its ability to cover global shortages as demand rises to a record high.

The desert kingdom may use an unprecedented 1.2 million barrels a day this summer to generate electricity for domestic use as one million people visit the country during the holy month of Ramadan, according to HSBC Holdings PLC. Rising power needs cut the country's surplus oil capacity 33 per cent this year to 2.3 million barrels a day, the lowest since November 2008, while world demand heads toward a record high of 90 million barrels, according to the International Energy Agency.

"We're seeing a contraction in available supply," said David Greely, a New Yorkbased commodities analyst at Goldman Sachs Group Inc.

Goldman Sachs is standing by its forecast that Brent crude will average $130 a barrel next year, even as the price tumbled Monday on concerns about debt in the U.S. and Europe. Subsidized gasoline, power plant inefficiencies and efforts by King Abdullah to provide jobs and housing for a population growing by 2.2 per cent a year are squeezing surplus capacity as turmoil from Libya to Yemen limits supplies

https://www.edmontonjournal.com/life/Saudis+consume+more/5226138/story.html