At what point is the Oil & Gas Sector attaractive as an investment?, page-8

OK, so we currently have oil demand at +90mb/day.

All the commentary I am aware of points to below forecast or slowing demand growth - in the order of 1-2% - whatever slant you put on it this is still growth. Even at zero growth the market still needs +90mb/day. To produce 90mb/day you need the highest cost producer to make money and he needs an oil price circa $80bl or he packs up shop.

I have not seen commentary, irrespective of the market driver, pointing to oil demand contraction. To push long term prices below $80/bl requires market demand contraction and not just a bit - by about 15-20% to bring demand back to 80mb/day - just folly...

I would expect for every hybrid that comes out the factory today, consuming 2/3 of the oil, there will be two cars tomorrow that offset the oil saving.