Tags: iea | oil | outlook | draft

World Soon Out of Oil, Maybe

By    |   Wednesday, 29 Oct 2008 08:08 AM

Don’t dump those alternative energy stocks quite yet.

A leaked early draft of a report by the International Energy Agency (IEA) suggests that the output decline is now 9.1 percent a year, faster than previously thought.

Lacking new investment, supply from existing oil fields will fall far short of demand, reported the Financial Times, based on the draft report.

As the oil price has cratered, of course, many new publicly financed oil projects are now on ice, and private financing is even harder to find in the midst of a banking crisis.

Hardest hit is Canada, where oil shale projects quickly become uneconomical once crude drops below $90 a barrel. Billions in projects there have been shelved or are under review.

According to the draft report, the IEA nevertheless says that the investment level needed to keep up will equal $360 billion a year every year until 2030.

The agency is miffed that the report, which it called “an early version of a draft from several months ago that was subsequently revised and updated,” got into the hands of the U.K. financial daily.

“The numbers in the article can be misleading and should not be quoted or considered to be official IEA results,” said the agency in a statement, without detailing how wrong or which numbers.

The official World Energy Outlook from the agency is due out Nov. 12.

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Don’t dump those alternative energy stocks quite yet.A leaked early draft of a report by the International Energy Agency (IEA) suggests that the output decline is now 9.1 percent a year, faster than previously thought.Lacking new investment, supply from existing oil fields...
iea,oil,outlook,draft
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2008-08-29
Wednesday, 29 Oct 2008 08:08 AM
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