Oil demand ‘rising faster than expected’

[RamboLiberal]

Source: Financial Times

World oil demand is rising faster than previously expected while non-Opec supply is growing more slowly, the International Energy Agency has said in its latest monthly assessment of the market.

The rich countries’ energy watchdog warned on Tuesday of growing tightness in oil supplies in the second half of the year, and urged the Organisation of the Petrolem Exporting Countries to raise its output.

David Fyfe, an analyst at the IEA, said: “We would very much hope that Opec production is at its seasonal low at the moment... We definitely do need more crude oil.”

The IEA now expects demand for oil to rise by 1.7m barrels a day this year compared to last year – an increase of about 2 per cent – and non-Opec oil supply to rise by just 900,000 b/d. That rise in demand is 167,000 b/d more than the IEA had previously estimated, while the rise in non-Opec supply is 97,000 b/d less.



Read more: http://www.ft.com/cms/s/76a4c516-18d6-11dc-a961-000b5df10621.html

[billbuckhead]

1. India is coming out with a $2000 car that runs on gas

Mankind sure is a bunch of lemmings.

<http://www.autoblog.com/2006/05/19/dirt-cheap-tatas-indian-automaker-to-market-2-000-car/>

[Name removed]

3. Deleted message

Message removed by moderator. Click here to review the message board rules.

[napi21]

2. I'm not sure I believe that. I understand China's higher demand,

and many other countries like Japan as well, but those countries all promote and drive small cars that are reasonably fuel efficient. Here in the US, although they still sell SUV's and BUG trucks, many people have given those up for smaller fuel efficent cars too. Sales of hybrid vehicles have skyrocketed here in the US.

Of course we can do much better, but this gloom and doom story is propaganda to shove higher gas prices down your throat!

[gravity]

4. More people are driving

Small cars still burn signifigant amounts of gas.

Oil doesn't just fuel cars either, and many other aspects of the economy depend on oil products

[napi21]

5. I understand that. I realize most electricity comes from an oil source.

I guess the part I'm questioning is there have been all kind of reports about things that would reduce energy consumption, like the baby boomers are retiring ( not going to be driving as much), prople have been having fewer kids per family (less drivers), due tp the cost of gas people are consolidating trips and driving less. You can't possibly believe all that doesn't have a downward impact on oil useage.

I know I've become a real sceptic on anything that the gov't or some think tank comes up with, but it just doesn't make sense to me.

[gravity]

7. It's not enough to offset increased demand

[NickB79]

8. Despite the aging baby boomer generation, the population is still growing

Globally we're still adding upwards of 70 million newborns per year to the population. The baby boomer thing is largely a US phenomenon, while much of the increased demand has come from Asia. Add to that that many of those people are transitioning from bicycles and walking to gas-powered vehicles for transportation, and that we're using more oil than ever to maintain farm yields (we use ~10 calories worth of oil for every 1 calorie of food we eat).

Also, most nations have passed peak oil production, and their oil production is now declining. Mexico, for example, has seen their giant Cantarell oil field collapse, declining at 25%/yr, cutting millions of barrels/yr from the market. Kuwait's giant Burgen oil field is also in decline, as is the North Sea off of Norway.

[hatrack]

13. "Most electricity comes from an oil source" - huh?

Most electricity comes from coal, followed by natural gas, followed by nuclear, followed (distantly) by wind.

[Bozita]

6. We'll see that same headline again

They'll be able to use the entire article as boilerplate. Just update the numbers.

[19jet54]

9. When the demand overpowers all available sources...

... a tipping point is reached and things will change drastically worldwide - Then What?

2004 National Geographic issue with OIL on the cover
http://news.nationalgeographic.com/news/2004/11/1129_041129_global_oil_supply.html

[Javaman]

10. boil that frog, hey! boil that frog, hey! boil that frog, hey! boil that frog, hey!

notice if you will, the latest round of gas hikes brought us up to 3 bucks a gallon. Now, what you are seeing is the thankful american plebes rejoicing over gas "plummeting" to 2.95. Whew, that was a close one huh?

Like a first time boxer getting his lumps with his sparing partner for the first time, we are getting used to the slow ratcheting up of the price. A body blow here, a jab to the face there and we are all toughened up.

If another hurricane plows through the gulf we will look fondly upon 3 bucks a gallon as the good old days.

And that isn't a matter of if, but a matter of when.

[donsu]

11. more oil to feed global warming - faster, faster

nt

[The2ndWheel]

12. Who did the expecting?

If more people have more access to more energy, demand would be...less?

[cliss]

14. A conclusion:

More demand + not enough oil = higher prices.



We should expect $4.00 or $5.00 per gallon of gas, and that's going to stay.

[Orsino]

15. "The Only Answer: More, More, More" n/t