(BN) Global Crude Output Likely Peaked in 2006, IEA’s Birol


Global Crude Output Likely Peaked in 2006, IEA's Birol Says
2010-11-17 14:37:58.212 GMT

By Ben Sills
Nov. 17 (Bloomberg) -- Global production of crude probably
peaked in 2006, and increasing demand will have to be met from
more-difficult-to-extract forms of oil such as tar sands,
International Energy Agency Chief Economist Fatih Birol said.
"The age of cheap oil is over," Birol said at a
conference in Madrid today.
Global energy use is set to increase by 36 percent over the
next 25 years as developing countries raise the standard of
living of their citizens by boosting demand for transport, air-
conditioning and electronic goods, the IEA estimates.
China, which is forecast to overtake the U.S. as the
world's biggest user of electricity in 2012, will see its energy
use rise by 75 percent, the IEA says.
The depletion of crude reserves may benefit countries such
as Canada and Venezuela, which have tar sands that yield oil.
Those resources are more expensive to extract and only become
economical when the price of oil rises.
The use of oil and coal probably will wane in rich
countries as they invest in renewable energies and shift to
electric vehicles, Birol said. Even so, China will be the
world's biggest market for clean power, nuclear power and
electric cars by 2035.

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--Editors: Reed Landberg, Rob Verdonck

To contact the reporter on this story:
Ben Sills in Madrid at +34-91-700-9603 or bsills@bloomberg.net

To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or landberg@bloomberg.net