World To Face "Oil Crunch"

Filed in archive on July 9, 2007

[Image Source: MSNBC]

Drivers, start your doomsday clocks. If you own any SUVs, sportscars, or RVs drive 'em if ya got'em. Because if the pessimists are seeing straight, the world is headed for serious oil supply issues in as little as five years.

The Financial Times' oil commodities correspondent Javier Blas reported that the International Energy Agency (IEA) - the independent oversight body that monitors the world's oil supplies - sees production in the Near East as having leveled-off while demand from developing countries like China and India are just gearing up.

"The IEA said that supply was falling faster than expected in mature areas, such as the North Sea or Mexico, while projects in new provinces such as the Russian Far East, faced long delays. Meanwhile consumption is accelerating on strong economic growth in emerging countries," reported Mr. Blas.

That means soaring prices at the pumps and probably shortages.

Troubling thought. But GM will have us all driving E85 flexi-fuel cars by then. Right?

[Source: FT]