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Page added on May 20, 2011
IEA: Urgent Need for More Oil
The IEA Governing Board, at its regular quarterly meeting on May 18-19, examined oil market developments and their impact on the global economy. Despite a near-10% correction since May 5, oil prices remain at elevated levels driven by market fundamentals, geopolitical uncertainty and future expectations. The IEA Governing Board expressed serious concern that there are growing signs that the rise in oil prices since September is affecting the economic recovery by widening global imbalances, reducing household and business income, and placing upward pressure on inflation and interest rates. As global demand for oil increases seasonally from May to August, there is a clear, urgent need for additional supplies on a more competitive basis to be made available to refiners to prevent a further tightening of the market.
Additional increases in prices at this stage of the economic cycle risk derailing the global economic recovery and are neither in the interest of producing nor of consuming countries. Oil importing developing countries are most likely to be seriously affected by high oil prices, undermining their economic and social well-being. In these circumstances, enhancing consumer-producer dialogue is urgently important to reach both short- and long-term solutions. The Governing Board urges action from producers that will help avoid the negative global economic consequences which a further sharp market tightening could cause, and welcomes commitments to increase supply. We stand ready to work with producers as well as non-member consumers; in this constructive spirit, we are prepared to consider using all tools that are at the disposal of IEA member countries.
4 Comments on "IEA: Urgent Need for More Oil"
Poopypants on Fri, 20th May 2011 5:05 am
Have they tried calling Daniel Yergin? He always seems to have an answer when the subject of Peak Oil comes up.
Or, maybe someone could produce some oil from algae…
Or, maybe we could produce more ethanol…
Or maybe we could start producing the 1 gabillion barrels of shale oil that’s all over the western states…
But, I think the best bet is to simply revisit the oldest, depleted fields. Because according to the abiotic morons, oil comes from inside the earth, so it’s about time that the good earth replenished the old fields.
Or maybe the US could ban housewives from driving SUV’s to starbucks for a $5 latte, while updating their facebook accounts telling everyone that they’re driving their SUV to starbucks to get a $5 latte.
Or maybe we should all buy electric cars and only use energy from alternative sources, that ought to do it. Where you at Ken?
Or maybe we could admit the truth and start an insane crash course in the US to conserve fuel, first by banning the SUV and then by informing the public of the problem and imploring all to conserve or suffer the consequences. Oh hell, who am I kidding?
cusano on Fri, 20th May 2011 7:15 am
I know a fellow who drives a gigantic Ford F250 heavy duty Truck. It cost him close to $100 to fill ‘er up. He doesn’t care..he has the money, he’s a pharmacist. As long as the gas station is open..he’s happy. He represents the american mindset regarding our way of life. It just ain’t gonna change until the gas station closes.
MrEnergyCzar on Fri, 20th May 2011 10:29 am
It will happen when they put a floor on the price of gas and add 50 cents a gallon to it each year…… of course, no one would get elected on that platform.
MrEnergyCzar
Kenz300 on Sun, 22nd May 2011 11:43 pm
Those long commutes from the suburbs will get even longer if you are riding a bicycle or walking to work, school or play. The world will transition from oil. It has no choice. The real question is how fast will oil demand exceed the available supply and how high will prices for oil get? We are beginning the transition.