Wednesday, July 02, 2008

There is No Oil Shortage.

Energy experts puzzled over oil prices - Yahoo! News
"We are very uncertain about the oil prices since it's highly volatile and we don't really know whether it is going to be stabilizing or going to lower levels," he told delegates. "But everybody agrees that oil prices are too high."

"There is a lot of uncertainty about demand," Khelil said. "Consequently there is a lot of uncertainty about the decision of investing" the tens of billions of dollars needed to make additional crude and refined supplies available.

He identified the main driver of prices as the weak U.S. dollar and the linked subprime crisis in America; geopolitical tensions, and increased emphasis on U.S. bioethanol production which he suggested diverted production of diesel and led to shortages.

Urging the world to brace for a "really big reshuffle" in energy expectations, Christophe de Margerie, CEO of French energy giant Total SA, said he expected oil production to plateau in just 12 years at 94 million barrels a day — less then 10 million barrels more than available now. And he warned the forecast was optimistic.

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