Offshore Oil Rig
According to a report in The Guardian, a whistle-blower at the International Energy Agency (IEA) claims that it is purposefully publishing misleading figures about the world's remaining oil reserves. A senior official, who asked not to be named, says the IEA is inflating its projections for fear of triggering panic buying and a worldwide financial meltdown. The source says the United States has encouraged the IEA to exaggerate the possibilities of finding new oil sources, while downplaying the diminishing returns from existing oil fields.
While the IEA's World Energy Outlook reports that production can increase from the current level of 83 million barrels per day to 105 million barrels per day, many analysts disagree. Some believe that we've already seen the world's peak oil production and that even an 8% increase from today's production levels would be unsustainable. This isn't the first time the IEA's assertions have been questioned, but sources say that the IEA's chief economist, Fatih Birol, is facing increased pressure from within his own organization to defend his numbers.
"The IEA in 2005 was predicting oil supplies could rise as high as 120m barrels a day by 2030 although it was forced to reduce this gradually to 116m and then 105m last year. The 120m figure always was nonsense but even today's number is much higher than can be justified and the IEA knows this, " says the insider.
The IEA was formed after the oil crisis in 1974 to help protect western nations from another energy emergency. Now one wonders if the agency is blinding the countries it's supposed to be helping to the reality of a world with dwindling oil reserves.
Source: The Guardian