International Energy Agency Says Prepare Now for Potential Oil Shock
PARIS, FRANCE — An International Energy Agency (IEA) study 'Saving Oil in a Hurry' says consuming nations must plan to ease potential shortages and price rises which could result from a large disruption to international supplies, Reuters reported on April 28.
Oil prices have already risen to record highs above $58 this year as surging demand in Asia's emerging economies pushes world supplies close to current capacity. Goldman Sachs bank has warned of a potential 'super-spike' to $100 a barrel. "We find that there are a number of different measures available that, at relatively low implementation cost, could together save upwards of a million barrels per day of oil, if implemented aggressively across all IEA countries," said IEA Executive Director Claude Mandil.
Among measures suggested in the report are carpools and driving restrictions, tighter motorway speed limits, special lanes for shared cars, free or cheaper public transport, a more compressed working week, and more telecommuting to reduce travel to and from work. Energy ministers from the 26 industrialized nations the IEA advises on energy policy will discuss the proposed demand measures at a two-day meeting in Paris.