October 29, 2008
Oct. 29 (Bloomberg) -- Global crude-oil output is falling faster than expected, leaving producers struggling to meet demand without extra investment, the Financial Times said, citing a draft of an International Energy Agency report.
Annual production is set to drop by 9.1 percent in the absence of additional investment, according to the draft of the agency's World Energy Outlook obtained by the newspaper, the FT reported. Even with investment, output will slide by 6.4 percent a year, it said.
The shortfall will become more acute as prices fall and investment decisions are delayed, the newspaper said. The IEA forecasts that the rising consumption of China, India and other developing nations requires investments of $360 billion a year until 2030, it said.
Financial Crisis May Lead to Oil Supply Crunch
IEA Executive Director Nobuo Tanaka participated in the 'Ministerial Panel' at this year's Oil & Money conference in London on 28 October. In his remarks, Mr. Tanaka said that the financial crisis may delay oil projects and lead to a serious supply crunch. He emphasised the need for maintaining investment. Other participants in the Ministerial Panel included (from far left) Panel Co-Moderator, Herman Franssen, President, International Energy Associates, H.E. Mohamed Bin Dhaen Al Hamli Minister of Energy, U.A. E., H.E. Abdulla Bin Hamad Al-Attiyah, Deputy Premier & Minister of Energy & Industry, Qatar, H.E. Abdalla Salem El-Badri, Secretary General, OPEC, and Co-Moderator, Alirio A. Parra, Former Minister of Energy and Mines, Venezuela. In a later session, Fatih Birol, Chief Economist of the IEA, took part in a panel on the outlook for the oil mark