Commodity on line: Global Oil shortage is looming large...
Global Oil shortage is looming large...
A multitude of world issues are converging and manifest themselves around future fossil fuel, energy resources, carbon dioxide, oxygen depletion, including water and mineral depletion. All combined alternative energy sources have limited energy potential to fulfill the needs of an existing and expanding world population.The International Energy Agency (IEA) July 10, 2007 warned in its latest medium- term oil market report that a market crunch is looming over around 2012, but some OPEC producers are breaking even more negative news. The IEA analysts stated “. . . the combination of declining spare oil capacity after 2010 and delayed new output will tighten fuel oil supplies, raising “serious concerns” for gas market security. Increased global competition and constrained export volumes will lead without doubt to higher price levels.” Analysts said the current depletion rate of Saudi Aramco fields, has increased from 8% in 2005 to around 12-14% in 2006. This would mean that new fields coming in production will only be there to cover lost production volumes elsewhere. The supply of oil from all world oil reserves of 1.08 trillion barrels or 1.29 trillion barrels of oil for a period of 34-40 years is irrelevant at this point. When total world oil reserves decline at an average of 30.5 billion barrels of oil + a 2.45% decline in oil production annually, as has been officially estimated, then severe economic consequences will occur within 5 to 10 years, while the world population increases by 75-100 million annually, or by 375-750 million people within 5 to 10 years.
Labels: Oil Exploration, World Economy
