- Joined
- Sep 25, 2007
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- 201
Hi all,
An article from the November 12th edition of the Globe and Mail (Report on Business). Excerpts:
Global oil companies are sowing the seeds of a new supply crisis and a return to record-high prices by cutting back on current investments in response to the global slowdown, the International Energy Agency warns.
Four months ago, economists warned of "demand destruction" as record prices and a slumping economy slowed the growth of global crude consumption. But now, the IEA is worried about "supply destruction" as producers delay expensive projects, including some in Canada`s oil sands, that would bring much-needed supplies to market.
Mr. Birol noted that producers across the globe – from multinationals tapping Canada`s oil sands to national oil companies operating in the Middle East – have been cutting back their capital budgets as oil prices slumped from record highs this summer to a 20-month low Tuesday of $59.33 (U.S.) a barrel.
http://www.theglobeandmail.com/servlet/sto...BNStory/energy/
Keith
An article from the November 12th edition of the Globe and Mail (Report on Business). Excerpts:
Global oil companies are sowing the seeds of a new supply crisis and a return to record-high prices by cutting back on current investments in response to the global slowdown, the International Energy Agency warns.
Four months ago, economists warned of "demand destruction" as record prices and a slumping economy slowed the growth of global crude consumption. But now, the IEA is worried about "supply destruction" as producers delay expensive projects, including some in Canada`s oil sands, that would bring much-needed supplies to market.
Mr. Birol noted that producers across the globe – from multinationals tapping Canada`s oil sands to national oil companies operating in the Middle East – have been cutting back their capital budgets as oil prices slumped from record highs this summer to a 20-month low Tuesday of $59.33 (U.S.) a barrel.
http://www.theglobeandmail.com/servlet/sto...BNStory/energy/
Keith