Ageing Oil Fields + Diminished Investment = Less Available Gas
Oil prices hit a record above $135 a barrel before falling back in Asia Thursday, with supply worries, rising global demand and a slumping dollar keeping crude futures on an upward track.
George W. Bush, King Abdallah
President Bush sits with Saudi King Abdullah upon his arrival at Riyadh-King Kahlid International Airport in Riyadh, Saudi Arabia, Friday.
For several years, the IEA has predicted that supplies of crude and other liquid fuels will arc gently upward to keep pace with rising demand. Now, the agency is worried that aging oil fields and diminished investment mean that companies could struggle to surpass 100 million barrels a day over the next two decades, the paper reported.
IEA article dated 07 Nov 2006:
The International Energy Agency called on governments to curb growth in energy demand and greenhouse gas emissions as it warned Tuesday that the world’s energy supply is rapidly running out.
The IEA said that global energy needs will surge by 53 percent over the next quarter century and that crude oil prices could exceed US$100 a barrel by 2030 as countries rapidly consume more energy, particularly emerging economies like India and China.
China is expected to overtake the United States as the world’s biggest emitter of carbon dioxide before 2010, the Paris-based agency added in its 2006 World Energy Outlook.
By 2030 the IEA’s nominal crude import price, which assumes 2.3 percent annual inflation, is expected to be US$97.30 a barrel, up half as much on the US$65 it predicted a year ago. The agency’s import price includes crude grades cheaper than premium-priced Brent and U.S. oil futures and tends to be around US$4 to US$6 a barrel lower than those prices — implying futures prices by 2030 in excess of US$100.
The IEA missed it by (20) Twenty some years.
Below are a few more articles on oil supplies in the future.
Climate change may upset oil supplies
China, Africa and Oil
Iraq Oil Industry Reviving as Output Nears Prewar Levels
Bush Unable to Win Concessions Likely to Lower Gasoline Prices
Reading the articles may gave you a new prospective on the high price of gas.
