The International Energy Agency has warned that a global oil crisis involving an abrupt escalation in oil prices before 2015 can not be ruled out.
In its World Energy Outlook for 2007, the agency says that it is very uncertain whether new oil production in the period to 2015 will be enough to compensate for the natural falloff in output from existing oil fields and keep pace with the projected increase in demand.
The agency says the consequences of unfettered growth in world energy demand are alarming.
This is the strongest warning yet from the International Energy Agency, which came to London today to sound the alarm about a real and growing threat to the world's energy security. It says securing a reliable and affordable supply of oil is going to become a formidable challenge for all because of growing demand.
It says that to satisfy this demand, Middle Eastern oil producers would have to invest more $1.1 trillion in oil facilities, and increase their supply of oil by 87% by 2030.
The International Energy Agency warns however, that there are growing doubts about the willingness - and ability - of national oil companies to make these investments.
The consequences for the rest of the world, it says, are alarming, and a supply side crunch, involving an abrupt escalation in oil prices before 2015 cannot be ruled out.
The IEA is calling for vigorous, immediate, and collective policy action by all Governments to move the world on to a more sustainable energy path. Carbon taxes and stringent efficiencies measures, it says, are the fastest and cheapest way to do it.
