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'Four Saudi Arabias' needed for oil
THE world will have to find four Saudi Arabias by 2030 if it wants to maintain its oil dependency, the International Energy Agency says.The reality of peak oil is fast approaching, and more must be done to develop and encourage the use of alternatives including solar and nuclear, the agency's chief economist has warned. "My main motto never changes, the era of low oil prices is over," Dr Fatih Birol said. "When the economy recovers, oil prices will recover accordingly. Mid to long term, we will be experiencing high prices." Oil prices have been on a steady upward trajectory for much of 2009.
Crude is traded in dollars, so it essentially gets cheaper when the US currency is weak. Benchmark crude for November delivery fell 52 cents to settle at $US79.09 on the New York Mercantile Exchange. Earlier in the day, oil ran as high as $US80.05 a barrel as the euro came close to $US1.50. Saudi Arabia, the globe's largest oil producer, pumped out more than nine million barrels of crude oil per day in 2008, the US Energy Information Agency reported. Dr Birol believes one major change needed is a move to electricity by transport. "There is a need for the transportation sector to make more use of electricity," he said from the IEA's headquarters in Paris. Both nuclear- and solar-powered electricity were acceptable alternatives. Dr Birol said the success or otherwise of efforts to tackle climate change would hinge largely on the upcoming UN climate summit in Copenhagen. "Agreement in Copenhagen is very, very important," he said. Posted by: tipper 2009-10-21 |
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