EIN News says, "World Oil Demand to Strain Supply in 2012, IEA Reports World oil demand growth will accelerate next year, adding to the pressure on available supplies, the International Energy Agency said on Wednesday, contradicting a more conservative outlook from producer group OPEC. (reuters.com)".
EIA is an organization of 28 member countries. All of them are significant users of oil. Only the United States is a significant producer.
It is obviously an intention of the IEA to help its members with oil supplies by claiming projected shortages. This would presumably encourage oil producers to increase production.
There's no reason to dispute the claim that oil demand growth will increase, but the key to the deception lies in the use of the term "available supplies". This is very nebulous. There is lots of oil presently available, and OPEC could increase production at a moment's notice. More importantly, new reserves continue to be discovered and are actually available through advances in deep water drilling technology. In addition, new discoveries of natural gas deposits and fracturing techniques will allow natural gas to become a ready substitute for many applications that now use oil.
The bottom line is beware of the fear mongers. Always look skeptically at the "wolf" criers.
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