[mailchimp_signup][/mailchimp_signup]The International Energy Agency (IEA) says in its medium-term oil market report, published this month, that the world is facing an “oil supply crunch” within five years. It says demand for oil, particularly from Asia, is much greater than current supply, particularly from non-Opec members.
Perhaps more strikingly, America’s National Petroleum Council(NPC) has presented a report commissioned by the Bush Administration recommending the USA adopt the toughest possible fuel economy standards for motor vehicles and join a global framework for managing carbon dioxide emissions.
“Facing the Hard Truths about Energy” is the result of a 21-month consultation chaired by a former head of Exxon-Mobil, involving oil companies, car makers and even NGOs. The report makes five recommendations, including dampening demand for fuel in transport, industry and homes.
It says the world is not running out of energy resources, but the slowing down in production of the most easily available sources of oil and gas means there are a lot of obstacles in the production of enough oil and gas to meet projected demand.
It recommends increasing use of coal, nuclear power, oil and gas from “uncon-ventional” sources, but a sub-group contributing to the report says technologies exist (or will exist) that can cut fuel use by 50% over 2005 levels.
In recommending the USA joins “an effective global framework for carbon management incorporating all major emitters of CO2”, the NPC report effectively asks America to join the Kyoto protocol, which President Bush withdrew from in 2001.
This news story is taken from the July 2007 edition of T&E Bulletin.