IEA Warns: Prepare for Oil Supply Disruptions

Among other news agencies, Reuters is reporting on a new International Energy Agency study, Saving Oil in a Hurry (link is to a February 28 draft copy), about to be released, that recommends industrialized nations prepare to take significant steps to reduce demand for oil in the likely event of a supply disruption on the order of 1-2 million barrels/day. 

This level of disruption is considerably below the margin previously assumed available before emergency measures would be required. The emergency measures the draft version of the report specifically mentions are grouped by effectiveness:

Very Large (more than 1 million bpd):

Large: 500,000 to 1 million bpd

Moderate: 100,000 to 500,000 bpd

Small: less than 100,000 bpd

How long before such "emergency" measures, and worse, become permanent, if the oil peak folks are correct? Oil futures closed at another record high today.

Created: 2005-04-02 03:52:41 by Arthur Smith