An interesting interview with a fellow trying to track the future of oil by tracking the progress of the world's megaprojects. Based on his analysis, it looks like a shortfall in supply is looming.
A couple of interesting notes:
And an alternative analysis which is being used by the CIBC (Canadian Imperial Bank of Commerce) is to look at the potential shortfall and what price you'd need to close that shortfall by destroying demand. And the figures that they're coming up with are quite dramatic. They see this sort of shortfall increasing from about one mb/d in 2006 which they believe can be closed by the price rising to $61/b, and then they take it up to 2.8 mb/d the year after at $70 oil. 2008 they've got shortfall of 5 million barrels and $80 oil. 2009 they're up to $90 oil. 2010 they're up to $101 oil.
JD: In the light of much evidence, and in the light of your report, do you think that Ken Deffeye's suggestion of Thanksgiving 2005 being the time of peak, is too bold in your opinion?
CS: No, that is entirely possible. We're now into, you know, a sort of unknown land. We haven't been in this situation before. I don't think we know quite how to analyse it. We're taking traditional, fairly conventional analysis. And we're saying let's see what happens when we do this. And I suppose the rough answer we get is that from this year on it looks difficult to get it to add up comfortably. It certainly looks as though after about 2008 it really doesn't add up. But it's not quite clear what more you can say.