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by Jerome a Paris
In a stunning interview for the French (reference) daily Le Monde, Fatih Birol, the chief economist of the International Energy Agency (i.e. the intergovernmental body created after the oil shocks of the 70s to coordinate the West's reaction to energy crises) effectively says that peak oil is just around the corner, and that without Iraqi oil, we'll be in deep trouble by 2015:
And as long as the US occupies Iraq, production will not increase... Houston, we have a problem... Bumped by whataboutbob
The whole interview is amazingly frank and free of diplomatic obfuscation. He blasts biofuels ("not based on any kind of economic rationality"), he notes that Africa is suffering the most already from expensive oil, he points out that even a slowing of China's growth will not reduce oil demand, and he talks pretty explicitly about production peaks and depletion:
He says it again twice in the interview: the gap between demand and supply will widen, and he blasts our governments for doing so little:
Of course, we might need to curb more than "demand growth", and actually move to curb "demand" itself, but his words are at least quite direct and explicit. Even more interestingly, he puts the finger on two important but rarely discussed items: field depletion (he mentions an 8% decline rate for mature fields, but indicates that even a 1% difference in the actual number would mean huge volumes by 2020), and Saudi reserves:
While not a direct attack on Saudi numbers, this is by far the most explicit voicing of doubt about their reserves from any official of a major organisation that I have ever read. "No official reason to doubt"??? That's a pretty gaping hole there to sneak other kinds of doubts... He notes that he believes Saudi Arabian promises to be able to bring its capacity from 12mb/d today to 15mb/d in 2015, but notes at the same time that (i) it's the only place in the world (other, potentially, than Iraq) where production can grow and (ii) it's less than the expected demand growth by then from China alone. While none of these facts should be surprising to my regular readers, it's quite something else to see them explicitly stated by one of the top officials of one of the major energy watchdogs of the Western world. The only question left is - will our governments listen, now? |
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Top IEA official: without Iraqi oil, we hit the wall in 2015 | 44 comments (44 topical, 0 editorial, 0 hidden)
Top IEA official: without Iraqi oil, we hit the wall in 2015 | 44 comments (44 topical, 0 editorial, 0 hidden)
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