Peak Oil News: This is what Peak Oil looks like

Sunday, August 24, 2008

This is what Peak Oil looks like

NJVoices


By Bill Wolfe


Demand growing. Supply shrinking - Get used to higher prices

Although I think they got the story wrong (i.e. by attributing the problem more to underinvestment in exploration and political restrictions on access to supplies, than to a decline in recoverable supply, or peak oil), according to the NY Times business page:

"In 1994, the top five oil companies spent 3 percent of their free cash on share buybacks and 15 percent on exploration. By 2007, they were spending 34 percent of their free cash on buybacks -- in effect, propping up their share prices -- and a mere 6 percent on exploration, according to figures compiled by a team led by Ms. Jaffe and Ronald Soligo of Rice University. As a result, some experts warn that supplies will fall short of the demand over the next decade, perhaps sending prices well above today's levels.

At a recent conference in Madrid, Christophe de Margerie, the chief executive of the French company Total, said the world would be hard-pressed to raise supplies beyond 95 million barrels a day by 2020. Only a few years ago, forecasters expected 120 million barrels a day by 2030, a level many analysts now view as unrealistic."


1 Comments:

At 9:57 AM, September 15, 2008, Anonymous Anonymous said...

Dont worry, after this month blood bath at the financial markets, no one can afford oil. the logic ? Well, When everything was dandy and nice, the price was $ 17! Look at us now - would the price be $ 9 ? Think !!!

 

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