Capacity Limits to Curb Oil Price Fall

Sydney Morning Herald – THE world should get used to oil prices above $US60 a barrel for at least the next two years due to capacity shortages, said Claude Mandil, the executive director of the International Energy Agency.

Speaking from Paris, Mr Mandil told ABC’s Inside Business that increased upstream supplies were not expected until at least 2008 and refining capacity would probably not increase until 2010 or 2011…

“Maybe we will witness peak oil in the coming decades,” Mr Mandil said.

“I don’t know exactly when. But I think it’s more a problem for international oil companies than for oil supply globally.”
Sydney Morning Herald