"Amid a more than twofold drop in oil prices, many said that the era of hydrocarbons is nearing its end, that a complete shift to alternative energy sources is necessary. I think that there is no real basis for making such far-reaching conclusions, at least for now," Putin said at the World Energy Congress in Istanbul.
The current glut in oil supply may cause long-term under-investment in the energy sector and therefore lead to a spike in oil prices, he added.
"Falling investment in exploration has led to the lowest, please note, my dear colleagues, the lowest increase in oil reserves in 70 years. Large-scale investment withdrawals from projects which are now viewed as unprofitable have been observed. There is no doubt that given further any developments of such tendencies, under-investment will become chronic and the global output of energy resources will inevitably lead to their deficit and new unpredictable price spikes, eventually hitting both producers and consumers," Putin said.
