Stability fears rise as oil reliance grows (BBC)

BBC online puts up a hot of interesting material about oil prices and depletion.

http://news.bbc.co.uk/1/hi/business/3953907.stm

Here’s the key points copypasted:

The world’s reliance on oil and gas is set to increase sharply as global energy demand soars by 60% over the next 25 to 30 years, an influential report predicts.

“Fossil fuels will continue to dominate global energy use, accounting for some 85% of the increase in world demand,” according to the World Energy Outlook 2004.

The good news is that there is plenty of oil and gas in the ground to meet demand. “The Earth’s energy resources are more than adequate to meet demand until 2030 and well beyond,” the report says.

And the bad news? Well, where to begin?
The world will have to contend with a predicted 60% rise in “climate-destabilising carbon dioxide” emissions between 2004 and 2030, most of it from cars, trucks and power stations.

Despite the sharp rise in overall energy consumption, “a billion and a half of the world’s poorest citizens totally lack access to electricity, and almost as many will lack it in the year 2030″, says IEA executive director Claude Mandil.

The report also raises concerns about energy security.

As a consequence, “oil markets are likely to become less flexible and prices more volatile”, says Mr Mandil, hinting at substantial energy price rises in the years ahead.

Another factor that will push prices higher is the increasing cost of extracting oil and other energy sources and delivering them to consumers.

“Oil prices will play a key role in attracting investment to the sector,” the report says, though even here “several factors could discourage or dry up investment in particular regions or sectors”.

The IEA draws a gloomy picture of the future, but along with it the agency also offers hope, insisting that its predictions about future trends are “not unalterable”.

Alternative energy sources could be made commercially viable
“More vigorous government action could steer the world onto a markedly different energy path,” it says.