We just lost 1/2 million bbl per day of spare capacity

The fine folks at the EIA have released their short term energy outlook, which extends to the end of 2007. This isn’t big news because it happens every month, but there are some interesting things in the report….like these ominous statements:
World surplus crude oil production capacity, located principally in Saudi Arabia, fell from about 1.8 million bbl/d at the end of 2003 to the current level of about 1 million bbl/d as production increased. Both the inability of world oil producers to increase production capacity to meet growing demand and growing concern about the security of supplies have contributed to rising crude oil prices.

thewatt