How we think, and perhaps lie, about the oil supply

IEA keeps the oil market calm. But academics questions oil supply estimates.

I recently blogged about one oil expert claiming the world's oil supply is less than officially admitted. In the most recent report from the International Energy Agency (IEA), it's clear what they are worried about: economic panic.

The IEA warns that continued rising oil prices could stymie economic growth on a wide scale. Oil prices have risen 80% this year from their low point after the economic woes that were openly recognized late in 2008. Crude is still less than $80 per barrel, far below the record prices of $140 or more a couple years back.

The U.S. and China rank #1 and #2 in national oil consumption.

DON'T TRUST THE IEA

A group of European academics are warning their governments to not trust the IEA oil supply figures. Without directly referencing the recent whistleblower who says the IEA is cooking the books, these scientists and engineers say the oil supply and production numbers have been "politicized." That's polite talk for corrupted and dishonest. The academics go on to say the world production of oil will actually decline between now and 2030, not increase as much as the IEA continues to project.

Here is where you can find this report on "Peak of the Oil Age." The leader author is Kjell Aleklett of Uppsala University. Aleklett is president of ASPO, Association for the Study of Peak Oil and Gas (ASPO).

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