Energy Finance

Peak oil? That is so last year. Today, we are in the Valley of De-Spare. As in, no more spare capacity.

Recent estimates by the U.S. Department of Energy’s Energy Information Administration forecast 2008 global oil production to be 86.48 million barrels per day, and consumption to be 86.40 million. Cutting it pretty close.

For 2009, the agency estimates production at 87.72 million barrels per day, with consumption at 87.76 million. Uh oh.

“The oil market remains tight, evidenced by rising prices, low surplus production capacity, and the concern that global supply growth may not keep pace with demand growth over the near term,” according to the agency.

Meanwhile, even as Saudi “plans” to raise production from 9.4 million barrels per day in June to 9.7 million in July, (a 27-year high), such talk has not resulted in an easing of prices.  Also, recent supply losses in Nigeria and heightened tensions between Iran and Israel add further concerns.  

Yea, though I walk through the Valley of De-Spare, I will fear no empty fuel tank. I have my trusty bike. 

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