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November 21, 2008 2:43:35 AM CST

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Sharp Decline Seen in Future Oil Supplies

Posted May 22, 08 11:50 AM CDT in Business,  US 

(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.

Source Wall Street Journal

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ConocoPhillips Los Angeles Refinery.   (AP Photo/Ric Francis, File)
An oil worker walks on a new well Tuesday, May 6, 2008, which is being drilled in the Sakhir, Bahrain, oil fields in the Persian Gulf.   (AP Photo)
A pumping unit sucks crude oil from the ground near Manhattan, Kan.   (AP Photo/Charlie Riedel)
Oil worker stands on a new well Tuesday, May 6, 2008, which is being drilled in the Sakhir, Bahrain, oil fields in the Persian Gulf.   (AP Photo)
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