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Climate Inaction Could Lead to Oil Price Spikes: WEO Report

05 Nov

“The weaker and slower the response to the climate challenge, the greater the risk of oil scarcity and the economic cost for consuming countries,” warns the International Energy Agency in its soon-to-be published 2010 World Energy Outlook (WEO) report.

However, the IEA reports the opposite could be true, assuming nations strive to meet their climate pledges, reduce demand and cut subsidies for fossil fuels.  Based on reference scenarios detailed in the report, the IEA says that a 10% reduction in global oil demand could translate into savings of nearly $20 per barrel of oil by 2035.

The IEA also foresees Iraqi oil production skyrocketing over the next ten years, reaching an output of 4.8 million barrels per day (bpd) by 2020.  Sometime after 2015, Iraqi production is expected to overtake that of Iran, according to the report.  Read more…

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Posted by on November 5, 2010 in Climate Change, Oil, Policy

 

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