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Peak
Oil - Oil Prices Need to Double in a Decade
Michael
Kumhof explains the International Monetary Fund (IMF) Research
Department's new, strikingly more
accurate,
oil supply/price/demand prediction model, and says that according to
the model oil prices will need to double in a decade to grow world
oil production by 0.9%, in line with published EIA predictions*.
The world economy could not cope with a doubling of oil prices, which begs the question of whether world oil production can be increased at all, at a price that anyone can afford.
Kumhof is very careful to stress the uncertainties surrounding the IMF's predictions, but brings the world a message that any reasonable growth in world oil production will be accompanied by serious episodes of demand destruction.
Sourced from the Institute of International & European Affairs: http://www.iiea.com/
The world economy could not cope with a doubling of oil prices, which begs the question of whether world oil production can be increased at all, at a price that anyone can afford.
Kumhof is very careful to stress the uncertainties surrounding the IMF's predictions, but brings the world a message that any reasonable growth in world oil production will be accompanied by serious episodes of demand destruction.
Sourced from the Institute of International & European Affairs: http://www.iiea.com/
Careful what you wish for Michael, you just might get it. And believe me you won't like it!
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