IEA Says Fading Oil Production Threatens Supply

According to The Wall Street Journal:

Production at the world's oil fields will decline faster in coming years, putting more pressure on future oil supplies, the International Energy Agency said on Wednesday.

As current fields fade with age and the industry moves offshore and into smaller fields, decline rates will accelerate, the agency found, and more investment will be required to make up the shortfall.

The Paris-based watchdog, which represents the interests of energy-consuming nations, made its prediction in a detailed analysis of 800 of the world's oil fields -- the first report of its kind.

- Another confirmation on what I fear, there will be less oil in the future due to PEAK OIL.

This is confirmed by IEA that means we might be looking at it's effects like within few years time but now the credit crisis may be temporary causing a advanced version of the peak oil effects.

That means when the oil production companies scale down oil productions due to rising cost of extractions especially those non-conventional oil such as tar sands, deep sea oil rigs, smaller oil fields and high sulfur hard to refine highly toxic heavy oil.

Cost to maintain operation are constantly going up and now the investments are not coming in fast enough to boost up the oil supply for the coming future.

Expect oil disruption or rationing for poor countries and sharp spike in pump prices when supply goes lower then demand.

The economist will argue that currently people will curb using oil so naturally causing lower demand hence lower oil supply is required.

The reality is we cannot kill off million of humans overnight and they are eating food produced thousands of miles away made possible by using oil. These people travel around using oil, buy goods made from oil and ultimately can't live without oil.

Lower demand means lower consumption of oil and that means holding our breath...and probably die.

Now that we had been given the red warning by IEA and probably by me and many other peak oilers since 1970s oil shock about peak oil, we should naturally prepare for the ultimate outcome.

This is not Y2K fear mongering conspiracy theory but a confirmed case by geologist, researchers, scientist, government officials and many more.

Action plans can be range from practical solutions like renewable energy replacement to crazy doomsday underground bunkers to avoid total nuclear holocaust.'

What you do with this information, is up to you. I can only guide you along.

Investors beware of the fluctuation that I had warned about. Losing money is nothing compare to health and mental stability.

Take time out when you feel stressed out or getting over worked.

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