Thursday, May 22, 2008

IEA Drastically Reduces Long-Term Forecast

International Energy Agency to Cut Supply Forecast, WSJ Says
By Steven Bodzin
May 21 (Bloomberg)

The International Energy Agency, the Paris-based energy analysis organization, will predict that companies may produce 100 million barrels a day by 2030, lower than the 116 million previously forecast, the Wall Street Journal reported.

The group is analyzing the 400 oilfields that provide more than two thirds of crude today to determine how much they are likely to produce in the future based on field health and investment, the newspaper said on its Web site.

The IEA is working with oil companies, oilfield-service companies, energy ministries and consultants, the Journal said. Saudi Arabia, Venezuela, Iran and China aren't cooperating with the new study, the newspaper reported.

The IEA has traditionally assumed that supply would rise to match demand, the Journal said. That assumption is now in doubt as producing nations fail to invest, according to the newspaper.