OIL PRICES SET TO FALL, BUT OTHER TECHNOLOGIES ARE ALREADY
ON THE RISE, SAYS ROBIN JACKSON
Contrary to some predictions, the price of oil is set to
fall, Robin Jackson, CEO of ADR International, says in his
latest business briefing. Nevertheless, other technologies
including wind and wave power are already set to become more
dominant sources of energy.
In ADR International's latest Business Briefing, Jackson says
reserves of oil are plentiful and it remains cheap to extract.
But the current high price of oil is driving consumers to
seek alternative sources of energy and major producers are
forecasting falling consumption.
High prices, a switch into alternative fuels such like gas,
nuclear and coal and the rapid growth in new energy technologies
are all contributing to a reduction in the demand for oil.
The Stone Age didn't end because people ran out of stone,
he says, but because other technologies became cheaper.
"It is likely then, given these economic fundamentals of abundant
supply and flat if not yet declining demand, that the current
high price of oil is not only unsustainable at current levels
but a significant downward adjustment is now overdue.
"It is highly likely that speculators are fuelling current
prices and so it is not a time to be betting on ever-higher
levels in the price of oil.
"Buyers must be cautious when buying oil futures. Indeed,
the high price of oil has triggered a set of irreversible
activities to seek alternative energy sources and reduce consumption
that would suggest that we are now at the beginning of the
end of the oil age.
"Over time a range of cheaper and better technologies will
substitute for oil in many aspects of our lives. Eventually
reserves will be left in the ground just like coal and tin
have been in the UK."
For a copy of the Business Briefing, please visit ADR International's
website at www.adr-international.com
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About ADR
ADR International is one of the longest-standing global procurement
consultancies, established in 1986. It applies its knowledge
and expertise to help its clients improve every aspect of
their procurement activity. Its main areas of expertise are
procurement consultancy, training and development, sourcing
and interim management services.
ADR International works with several global corporations to
improve their procurement effectiveness. Clients include GE,
the world's biggest non-oil company by market value, Genentech,
Pfizer and Alcan. For more information please visit www.adr-international.com
About Robin Jackson
Robin Jackson, chief executive officer of ADR International,
held senior management positions in procurement with the Ford
Motor Company, Philips Electronics and Nissan. Since joining
ADR International in 1988 he has amassed a wealth of hands-on
purchasing experience with clients worldwide in the Europe,
USA, South Africa, APAC and Australasia. He holds an honours
degree in economics from Manchester University.
For more information
Please contact Mark Whitehead at Headline Media on
0208 348 3103 or 07906 720141 (mobile) or on markwhitehead@headlinemedia.co.uk
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"The net impact of ADR's contribution was measurable improvement in cost competitiveness during a sustained period of rising commodity markets. The European operation benefited in terms of cost containment that enabled us to improve our overall profit targets."
