|June 19, 2011|
Is the IEA's Warnings Falling on Deaf Ears? Pyrolysis & Gasification Solutions?
|The stark warnings from the IEA were loud and clear:|
Unless OPEC increases production, supplies may become "very tight" and will be unable to meet global demand.
Unfortunately, Kuwait and the Saudis are most likely the only OPEC members supporting the increase. Then again, that makes perfect sense.
Take Libya: On Thursday, the IEA reported oil production had fallen below 200,000 barrels per day. Prior to the uprisings, the country was pumping out 1.6 million barrels per day. And don't think things will change for the better...
The IEA also mentioned this week that Libya will be unable to return its production to that 1.6 million b/d levels until 2014.
How bad is it getting out there?
The world consumed about 86.7 million barrels of oil every day during 2010. Very soon, we'll be over 90 million barrels per day. The IEA even expects global demand to reach 95.3 million barrels per day within the next five years.
Things have gotten so tight in China that diesel exports leaving the country were suspended last month. They're trying to conserve as much as possible.
The IEA reported approximately 41% of the world's demand increase between now and 2016 will come from China. Much of the rest of that increase is expected to come from the rest of Asia and the Middle East.
Of course, we can't leave our own crude addiction in the dark. As you can see below, our demand is heading higher, too: