Sharp Decline Seen in Future Oil Supplies
Industry may require massive cash infusion to keep up with demand: analyst
By Jim O'Neill,  Newser User
Posted May 22, 2008 11:50 AM CDT
ConocoPhillips Los Angeles Refinery.   (AP Photo/Ric Francis, File)
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(Newser) – The international agency that monitors oil supplies is preparing a very pessimistic forecast of future capacity, the Wall Street Journal reports, one that heightens worries over whether producers will be able to keep pace with exploding demand for oil. The International Energy Agency, whose previous models showed steady—and predictable—growth, is revising that sharply downward, the Journal says, though the report won't be out until November.

The IEA is, for the first time, studying the condition of the world’s 400 known oil fields and its outlook has become increasingly grim. "The oil investments required may be much, much higher than what people assume," said the IEA's chief economist. "This is a dangerous situation." That could drive oil prices—which have already doubled in the past year—significantly higher.