New study analyzes global energy resources
In a long awaited analysis of global energy resources, the Paris-based International Energy Agency attempted to calm fears of severe world energy shortages anytime soon. Since the IEA is recognized as the pre-eminent global source for predicting long-term energy supply and demand balance, this periodic projection is eagerly anticipated, especially this year.
Above everything else, the report stressed the need for oil producing countries and international oil consortiums to become more aggressive in locating and pumping available reserves to make this happen. At this juncture, very little money is being invested in new exploration as producers wait to see whether the present shortages and high prices extend into next year.
Although claiming that there are sufficient reserves to meet demand for the next 25 years, the IEA assumption has been based on conservative demand increases and an assumption that oil producers will invest the capital necessary to keep up with increasing demand.