Moniz: Low Crude Prices Unlikely to Change US Energy Policies
by Nick Snow (Oil & Gas Journal) Crude oil prices below $50/bbl could force some producers to reduce capital expenditures if they go on for long, but are not likely to change US energy policies, according to US Sec. of Energy Ernest G. Moniz.
“We will still see increases in our oil production in 2015. It has been tempered, but should reach 9.3 million b/d,” Moniz said during a Jan. 7 discussion at the Woodrow Wilson International Center for Scholars. “If low prices persist for a long time, reductions in capex will appear down the road.”
The Obama administration is trying to put together a comprehensive picture of what low oil prices mean beyond consumers driving more and buying new motor vehicles, Moniz said.
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“We continue to focus on reducing that dependence in a variety of ways, including vehicle research and alternative fuels, most notably next generation biofuels,” he said. “Costs are not there yet, but they’re coming down fast. READ MORE
