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A new report by a prominent energy research firm warns that the world's
oil supply could start to dry up over the next 10 years. In a report
unveiled at an International Energy Agency meeting in Paris, the UK
Energy Research Center said petroleum production is likely to peak by
the year 2020 leading to global shortages as supplies taper off.
world's demand for oil is unsustainable. That's the warning from a new
report delivered at the International Energy Agency's ministerial
meeting in Paris.
According to the U.K. Energy Research
Centre, world oil production is likely to peak before 2030. The
report's author, Steve Sorrell, says the global supply could start to
dry up sooner.
"The basic physical features of the resource mean
that production will start to decline at some point and will continue
to decline and no amount of investment is going to turn that process
around," Sorrell said. "Ten years, 15 years, even 20 years is not
The meeting of energy ministers from the 28 IEA
member countries is looking at key energy challenges facing the world
today. IEA executive director Nobuo Tanaka's says among them, higher
"Already cheap energy price age is over," he said. "Cheap oil age is over. That is our message."
world currently produces about 85 million barrels of oil per day.
Estimates show production will rise to over 100 million barrels before
oil resources begin to run out.
But some research groups say production will be sufficient well into the 21st century.
And some oil companies argue new fields discovered in Angola, Brazil and the Gulf of Mexico should be able to satisfy demand.
"Even if you assume and make optimistic assumptions about
the size of the resource, you assume that the investment takes place
and these areas are open to access, the evidence still points to
constraints within this period of time," he said.
recession and the popularity of fuel efficient vehicles has reduced
demand in the United States, OPEC (the Organization of Oil Exporting
Countries) says demand for oil is growing faster than anticipated due
to an improving global economy and increased consumption in developing