Friday, October 31, 2008

OILFIELD OUTPUT DECLINING FASTER THAN THOUGHT

Financial Times - Output from the world's oilfields is declining faster than previously thought, the first authoritative public study of the biggest fields shows. Without extra investment to raise production, the natural annual rate of output decline is 9.1 per cent, the International Energy Agency says in its annual report, the World Energy Outlook, a draft of which has been obtained by the Financial Times. . .

The IEA, the oil watchdog, forecasts that China, India and other developing countries' demand will require investments of $360bn each year until 2030. The agency says even with investment, the annual rate of output decline is 6.4 per cent.

The decline will not necessarily be felt in the next few years because demand is slowing down, but with the expected slowdown in investment the eventual effect will be magnified, oil executives say.

Guardian, UK - The risk to the UK from falling oil production in coming years is greater than the threat posed by terrorism, according to an industry taskforce report. The report, from the Peak Oil group, warns that the problem of declining availability of oil will hit the UK earlier than generally expected - possibly within the next five years and as early as 2011. Oil supply could then rapidly decline, or even collapse, the report warns, with potentially devastating implications for the UK economy.

The report was issued today by the recently established UK industry taskforce on peak oil and energy security, a group of eight companies including transport firms Virgin, Stagecoach and First Group, engineers Arup, architects Foster and Partners, and energy giant Scottish and Southern. . .
The new report marks the first time a group of businesses has weighed into this debate. . .

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