Opposing views: in the dark about oil demand
Some say global demand for oil is waning. Others say the exact opposite. Get the right facts and make up your own mind. Everyone else is in the dark.
November 23, 2011 4:58 by Precious de Leon
A regular Kipper confided that in a recent company meeting—one that’s done quarterly to let all the staff know how the general state of company’s affairs are doing—the key take-away from the head honcho’s 15-minute talk is that next year things remained ‘uncertain’.
That’s right folks, words of wisdom from the person who made sure everyone kept their jobs: they don’t really know what’s going on either. Not very comforting now is it?
Whether or not this bigwig decided to keep the rest of the company in the dark about looming danger or surprise them for an imminent upward stride in business is another conversation altogether. But it’s pretty safe to say that the most informed person would still not be able to confidently predict the state of the next few months, and indeed the next year and looks like this is especially true for the oil and energy sector.
Take for example two stories published today on Emirates 24/7 that point two conflicting statements.
The first is a story on UAE’s real GDP expected to grow 4 percent this year. The report says that growth could be slowed down next year “because of lower oil output due to slackening global demand.” The report was sponsored by Saudi banking giant Samba.
Remember that. Oil demand is waning.
Click through to another article published on the same day in the same site, saying that renewable energy development “are beset with uncertainty because of abundant oil and gas supply,” at least according to findings by Saudi Aramco.
The headline even underlines this issue saying that it is “stifled by surging oil wealth.”
Aramco President and CEO Khalid Al Falih even cited that “huge oil and gas findings in Canada and other areas and said this should prompt developers of renewable energy sources to put brakes on their operations.”
He further says that renewable projects were started on the basis of scarcity of oil supply. But I guess now since there’s so much supply and continued demand then what’s the use of looking for alternative energy sources right? At least that’s what he said.
So is oil demand waning or is it getting even stronger? Hmm…
Anyone who’s lived in the Middle East for a long while will know media here is about reading between the lines. The bigger picture in this instance could be either one of two things—the two articles can’t be both right. So which do you think it is?
If you think about it, the oil demand is just one example, though an important one that could virtually affect our very livelihood, there are other story examples out there that come out in conflicting statements.
The idea catching someone out there fibbing is appealing. Have you seen any other conflicting statements elsewhere? Share it with us! Leave a comment here or connect through [email protected]