Thursday, November 6, 2008
Peak Oil: You Can Run, But You Can’t Hide From Higher Oil Prices
November 6, 2008 - What does it say when the normally conservative International Energy Agency is even gloomier than already depressed markets? That this autumn’s relatively cheap oil is likely a flash in the pan—and that triple-digit oil will soon be a permanent fixture again.
The Paris-based IEA, energy adviser to rich countries, is warning that crude oil will average $100 a barrel between 2008 and 2015 because of a looming supply crunch. That’s a more pessimistic take than the oil market itself, which prices forward oil futures contracts in the $80s (for 2010 and 2011) and around $90 (for 2012 and 2013). The biggest cause of that coming crunch, the IEA says, is “under-investment” in new and existing fields in order to make sure oil production keeps pace with production declines and growing global demand. More >>>