(1888PressRelease)
November 20, 2008 - London, The agency, an adviser to 28 nations, expects demand for oil to rise from 85 million barrels per day currently to 106 million barrels per day in 2030.
The IEA cut its global oil demand by 10 million barrels per day, from its previous forecast, “reflecting mainly the impact of much higher prices and slightly slower GDP growth.” While the global financial crisis will dampen demand to a certain extent, developing countries like China and India will emerge as major demand centers, the advisor stated.
“The current financial crisis is not expected to affect long-term investment, but could lead to delays in bringing current projects to completion,” the agency said in its newly published World Energy Outlook on Wednesday. It has called for “timely and adequate” investment to scale up global oil resources to prevent a shortage of supply.
As oil prices dropped by more than half from July’s high of $147, the Organization of the Petroleum Exporting Countries (OPEC), which pumps around 40 percent of the world's oil, cut output by 1.5 million barrels per day from Nov. 1.
The OPEC also warned that crucial investment in refining and distribution would be halted if oil prices were not maintained at a reasonable level.
“There remains a real risk that under-investment will cause an oil-supply crunch” by 2015 as decline in output from mature fields speeds up, IEA said. The world will need to invest more than $26 trillion, by 2030 to ensure continued energy supply, the agency added.
###
