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IEA Chief Economist Urges Oil Producers to Invest in New Projects

Petroleum storage tanks at the Suncor tar sands operations near Fort McMurray, Alberta, Canada. IEA… ENLARGE Petroleum storage tanks at the Suncor tar sands operations near Fort McMurray, Alberta, Canada. IEA has singled out Canada as a key focus area for future oil production. Reuters MADRID—The International Energy Agency’s chief economist on Friday urged oil producers to boost investment in new projects to meet an anticipated rise in demand, a move that he said may avoid oil price spikes in coming years. Speaking in Madrid during the presentation of the IEA’s annual report, Fatih Birol said that a tumble in oil prices makes it hard to believe a supply crunch may happen any time soon, but the slow pace of development of new projects makes it imperative to act. “We shouldn’t just ignore tomorrow’s challenges,” Mr. Birol said. “This is hard point to make in this context of lower […]

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IEA Gets Budapest Offer With Paris Lease Expiring in Two Years

The International Energy Agency , the adviser to 29 governments, got an offer to move to Budapest. The lease on its premises in Paris, home since 1974, is due to expire within two years. Hungary is willing to house the IEA for free, according to the official government gazette. The agency employs 240 people, including analysts who produce reports, compile statistics and make policy recommendations on energy issues. The lease on the IEA’s current secretariat expires in 2017, Greg Frost, a spokesman for the organization said by e-mail today. “The IEA and its 29 Members are therefore considering several options for our future accommodation,” he said, without mentioning Budapest. “Any decision on accommodation rests with the IEA Governing Board, and a decision is expected to be taken within the next year.” The IEA was formed in response to the 1970s oil crisis. Its members, including the U.S., Germany and […]

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IEA sees world oil demand rising to 104 million b/d in 2040 from 90 million b/d in 2013

Home | News & Analysis | Latest News Headlines | IEA sees world oil demand rising to 104 million b/d in 2040 from 90 million b/d in 2013 London (Platts)–12Nov2014/137 am EST/637 GMT The International Energy Agency has delivered a new warning about future supply of oil and gas as turmoil continues in the Middle East and the conflict between Russia and Ukraine remains unresolved. In its latest annual World Energy Outlook to be released later Wednesday, the Paris-based IEA said current ample supply of oil should not leave consumers complacent, especially given the increasing dependence on Middle East producers. "The short-term picture of a well-supplied oil market should not disguise the challenges that lie ahead as reliance grows on a relatively small number of producers," the IEA said, in an apparent reference to current expectations that rising supply will more than meet incremental world oil demand in the […]

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U.S. Shale Boom Masks Threats to World Oil Supply, IEA Says

The U.S. shale boom masks threats to global oil supply including Middle East turmoil, conflict in Ukraine and the difficulty of unconventional oil production beyond North America , the International Energy Agency said. “The global energy system is in danger of falling short of the hopes and expectations placed upon it,” the IEA said in its annual World Energy Outlook today. “The short-term picture of a well-supplied oil market should not disguise the challenges that lie ahead as reliance grows on a relatively small number of producers.” Global oil consumption will rise to 104 million barrels a day in 2040 from 90 million barrels a day in 2013, driven by demand for transport fuel and petrochemicals in developing countries , the report said. To meet that growth and replace exhausted fields will require about $900 billion a year in investment by the 2030s as oil companies develop fields from […]

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The EIA’s International Energy Statistics 2

The EIA, a few days ago posted their International Energy Statistics . They publish lots of statistics here but on monthly basis I only follow their  production of world  Crude Oil including Lease Condensate . The data on all charts below is Crude + Condensate production through July 2014 and is in thousand barrels per day. World C+C production was up 168,000 bpd to 77,023,000 bpd. The high, so far, was in February at 77,409,000 bpd. Non-OPEC C+C was down 135,000 bpd from it high so far. It has been on a 9 month plateau high. World Less US & N-O Less US That surge upward in world C+C production was, of course all US production. Without US production Non-OPEC production is 1,365,000 bpd below the peak in November, 2010 and is currently below the level hit on November, 2003. World C+C less US is 2,069,000 bpd below the […]

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Brent Falls to Lowest Since 2010 After IEA Cuts Forecast

Brent oil tumbled to the lowest level in almost four years and West Texas Intermediate slipped the most since 2012 after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009. Futures dropped 4.3 percent to $85.04 a barrel in London and 4.6 percent to $81.84 in New York . Oil consumption will rise by about 650,000 barrels a day this year, 250,000 fewer than the prior estimate, the Paris-based agency said in a monthly report. U.S. crude supplies probably grew by 2.5 million barrels last week, according to a Bloomberg survey of analysts before a report from the Energy Information Administration on Oct. 16. Oil futures have collapsed into bear markets as shale supplies boost U.S. output to the most in almost 30 years and global demand weakens. The biggest producers in the Organization of Petroleum Exporting Countries are responding by […]

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Oil demand down, IEA says

Global oil demand faltering, International Energy Agency says. UPI/A.J. Sisco.. PARIS, Oct. 14 (UPI) — Lower economic growth expectations mean the forecast for global oil demand is down, but should recover in 2015, the International Energy Agency said Tuesday. The Paris-based IEA released its monthly market report for October, saying it cut its oil demand prediction for the year by 200,000 barrels per day from the previous month’s report to 92.4 million bpd. The IEA attributed the decline to lower economic growth . In its monthly report, the Organization of Petroleum Exporting Countries kept oil demand growth predictions steady at 1.05 million bpd for 2014. "Annual demand growth for 2014 is now projected at 700,000 bpd, rising tentatively to 1.1 million bpd in 2015 as the macroeconomic backdrop improves," IEA said in its forecast. OPEC last week said the global economy should grow by 0.6 percent next year to […]

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Oil fell for a third month straight in September with Brent breaking through $90/bbl in October

Oil fell for a third month straight in September with Brent breaking through $90/bbl in October , on abundant supply, slowing demand growth and a strong US dollar. Brent prices have fallen by over 20% since June, when turmoil in Iraq lifted prices to $116/bbl, and were last at a near four-year low of $88.70/bbl. NYMEX WTI was at $85.20/bbl.   The forecast of global oil demand for 2014 has been revised 0.2 mb/d lower since last month’s Report, to 92.4 mb/d, on reduced expectations of economic growth and the weak recent trend. Annual demand growth is now projected at 0.7 mb/d in 2014, rising tentatively to 1.1 mb/d in 2015, as the macroeconomic backdrop improves.   Global supply rose by almost 910 kb/d in September to 93.8 mb/d, on higher OPEC and non-OPEC output. Compared with a year earlier, total supply stood 2.8 mb/d higher, as OPEC supply swung back to growth and amplified robust […]

Posted On : Published By : Tom Whipple