LONDON — Reuters Last updated on Wednesday, Sep. 16, 2009 01:23PM EDT
Peak oil supply will be hit this year after the economic crisis and low prices in the first quarter of 2009 slashed much needed investment, a senior executive at Australian investment bank Macquarie said.
“This is our view – capacity has pretty much peaked in the sense that declines equal new resources,” Iain Reid, head of European oil and gas research at Macquarie, told Reuters.
The peak oil theory that oil supply is at or near its peak was long considered marginal.
It gained currency when prices (CL-FT71.85-0.62-0.86%) zoomed towards their record of nearly $150 (U.S.) hit in July last year, with leading exponents suggesting various dates for the supply peak to be reached.
Some oil majors have acknowledged the prospect of dwindling production, but others have argued better extraction techniques and other technological advances will offset any decline.
Mr. Reid's latest research report – The Big Oil Picture: We're not running out, but that doesn't mean we'll have enough – sees global oil production capacity topping out at 89.6 million barrels per day (bpd) this year, a far more pessimistic view than most other banks or traditional forecasters.
Underinvestment in mature fields, rising resource nationalism, and the cost and difficulty of retrieving oil from discoveries in ultra-deep water could see global production capacity fall to 87.3 million bpd by 2015, according to Mr. Reid.
Mr. Reid, who spent 16 years with oil firms Shell and Amerada Hess, saw the current spare capacity cushion of around 5.2 million barrels wiped out by 2012.
Full article at
http://www.theglobeandmail.com/globe-investor/peak-oil-expected-in-2009-macquarie/article1289428/