Peak Oil: IEA Inches Toward the Pessimists’ Camp

July 1, 2008: What’s up with oil prices? Well, it’s not speculators, and there’s no relief in sight, meaning at least five more years of high prices with no easy fixes. The ugly truth? Peak oil isn’t fringe anymore—it’s going mainstream.

That’s the reading from the latest oil market report from the International Energy Agency, the rich-country energy watchdog. The IEA’s latest x-ray of the oil market includes plenty of disturbing nuggets.

The fact that there are no growing stockpiles of crude around the world, for example, suggests speculators aren’t behind crude’s dizzying rise this year (much to Paul Krugman’s satisfaction and Congress’ chagrin.)

And while U.S. drivers fret and worry over how to pay for the Prius, the sad truth is that it doesn’t matter: By 2015, developing country oil demand will outstrip the rich world’s. They’re already in the driver’s seat: 90% of the demand growth over the next five years will come from Asia, the Middle East, and Latin America, the IEA said. More >>>