- Nov 17, 2011
Reminder: fossil fuels are getting scarcer, says IEA
The International Energy Agency (IEA) would like to remind everyone – everyone who doesn't think about this regularly and pretty much already knows this, anyway – that "we cannot continue to rely on insecure and environmentally unsustainable uses of energy." Guess what those unsustainable energy uses are? Yup.
This recommendation is found in the group's latest World Energy Outlook (WEO), which says – among other things – that, "rising transport demand & upstream costs reconfirm the end of cheap oil." The main driver of the higher energy costs between now and 2035 are big energy demand growth in non-OECD (Organisation for Economic Co-operation and Development) economies. The WEO assumes that governments only offer tame efforts to stem demand and encourage renewables and that, "China consolidates its position as the world's largest energy consumer: it consumes nearly 70% more energy than the United States by 2035, even though, by then, per capita demand in China is still less than half the level in the United States." The expected price of a barrel of oil in 2035 is $120. Of course, if Middle East and North Africa regional investments run, "one-third lower than the $100 billion per year required, consumers could face a near-term rise in the oil price to $150/barrel." There's more bad news for people who want to rely on gasoline and other fossil fuels, and you can check them out here. If you dare.