World will face oil crunch in five years

World will face oil crunch ‘in five years’

The world is facing an oil supply “crunch” within five years that will force up prices to record levels and increase the west’s dependence on oil cartel Opec, the industrialised countries’ energy watchdog has warned. In its starkest warning yet on the world’s fuel outlook, the International Energy Agency said “oil looks extremely tight in five years time” and there are “prospects of even tighter natural gas markets at the turn of the decade”. The IEA said that supply was falling faster than expected in mature areas, such as the North Sea or Mexico, while projects in new provinces such as the Russian Far East, faced long delays. Meanwhile consumption is accelerating on strong economic growth in emerging countries. The problem is exacerbated by the fact that supply from non-members of the Organisation of the Petroleum Exporting Countries will increase at an annual pace of 1 per cent, or less than half the rate of the demand rise.

For those of us who’ve been SHOUTING about this for the past five years and more, it’s about time there was some mainstream acknowledgement. Don’t wait until gas hits $10.00 a gallon or more (and it will) to sell your SUV and buy a more efficient car. If you do, you won’t be able to buy that hybrid or electric at any reasonable price, demand for them will be so high.

As James Howard Kunstler is so fond of saying, you’ll be “stuck up a cul-de-sac in a cement SUV without a fillup.” Oil’s already close to $80/barrel, and the fun hasn’t even started. Matthew Simmons sees a strong possibility of oil prices up to the $300 a barrel range within 5 years. If you’re driving a Denial, a Youcon, an Escalation, a Negativator, or anything of that sort, DUMP THE SUV ALREADY!!!!!!!

Comments (One comment)

Syed Qamar Afzal Rizvi / May 8th, 2008, 1:33 am / #1

Economically, environmentally and strategically , the today world needs an extremely based excercise to brainstorming regarding the gloablly conceived planning to reduce the energy consumption, thereby having the means to strongly meeeting the emerging challenges of global warming and the expected oil crisis.

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