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World to be dominated by oil for 10 years - Tony Twine, Econometrix In an interview on ClassicFM @ 18:00 on Wednesday, 12 July 2007 [miningmx.com] -- THERE was no short-term genuine alternative for fossil-based fuels and the world would be dominated by oil for the next eight to 10 years, an economist has said. “I think on a medium term outlook and possibly even on an eight to 10-year outlook we are still going to be heavily dominated around the world by oil and by other fossil fuels,” said Tony Twine of Econometrix. Twine’s comments come after the International Energy Agency (IEA) said on July 11 that the oil price was going higher with supply increasingly struggling to meet demand. Twine said he was not surprised by the IEA announcement. However, he said the world's oil industry was complex: the frantic supply side anxieties were also probably overstated: “I wonder if they (IEA) are taking account all of the supply-side factors that could possibly come home to roost over the next year or two," Twine said. "For instance, the Russians are busy building pipelines and port facilities in Finland for about two million barrels a day of Russian oil that’s already being produced. So the IEA wouldn’t have recognized that as production coming on stream. That will become available as exportable oil to the rest of the world." "There’s all sorts of little trip wires in the landscape, and although one senses that the IEA is right in the medium to long-term, I don’t know whether it’s worth getting that frantic about this right at the moment.” Speaking on Classic Business Day, a week nightly radio broadcast, Twine said refineries that liked particular grades of crude were going to pay a bit of a premium for those grades of crude and less for others. Some of the crude grades were in fact interchangeable at the refineries. “The refineries aren’t that sensitive that they require microscopically defined grades of crude,” he said.
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