International Energy Agency 2008 report.
The BBC is reporting the results of the International Energy Agency 2008 report contains a warning derived from the implications of the current credit crisis on investment in oil and gas, and hence future production deliverables.
IEA is declaring the era of cheap oil is over. The cheaper prices we are experiencing today are attributable to the market meltdown as the world consumption of energy continues to tank. No one has any quality information as to the extent of the decline in demand, and as such is assuming the worst scenario and prices are collapsing. This is a temporary situation that may last for the full term of the markets meltdown, which may be the next five years.
The lack of investment is cited by the report as the reasons behind the warning. The geological aspects of peak oil, or declining production due to lack of reserves, is not the issue that the IEA is warning about. It is the lack of investment by the industry to ensure the market supply of energy is maintained. I would tend to agree with these assumptions that the lack of investment is a more dire and serious problem then peak oil.
This project does not have the financial resources to pay for the full report. However, the BBC coverage is providing us with the scope of the warning and the material information in the IEA's report.
But, they point out, field by field, declines in oil production are accelerating and more money will be needed in research and development to extract the oil there is.
While world oil supply will rise, the report's authors predict that massive investments in energy infrastructure will be needed - an eye-watering $26 trillion dollars up to 2030.
Big numbers. I sarcastically assume that the structured hierarchy will be able to provide the industry with the appropriate organizational structure to 2030. It seems ridiculous to me to throw this type of money at the problem on the same basis as we have relied on in the past. Doing the same thing and expecting different results will be insane. The bureaucracy will fail, I would have 100% concurrence from those in the oil and gas industry and energy consumers in general. We need to begin the process of developing the software and building the organizations and systems necessary to undertake this critical task. A critical task that may materially affect our way and quality of life if we are not successful.
A significant amount of this money - $8.4 trillion - will need to be spent on oil and gas exploration and development.
I suggest we develop the People, Ideas & Objects application based on the vision provided in the Draft Specification, please join me here.
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