{"id":20413,"date":"2016-05-04T06:03:20","date_gmt":"2016-05-04T11:03:20","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20413"},"modified":"2016-05-04T06:03:20","modified_gmt":"2016-05-04T11:03:20","slug":"a-4-5-million-barrel-per-day-oil-shortage-looms-wood-mackenzie","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20413","title":{"rendered":"A 4.5-Million-Barrel Per Day Oil Shortage Looms: Wood Mackenzie"},"content":{"rendered":"

A 4.5-Million-Barrel Per Day Oil Shortage Looms: Wood Mackenzie<\/a><\/h3>\n
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A\u00a0report<\/a>\u00a0by Wood Mackenzie has warned the world may face a daily oil shortage of 4.5 million barrels by 2035. The amount represents around half of the global consumption\u00a0estimate<\/a>\u00a0of the International Energy Agency (IEA) for 2016. In other words, a true crisis is looming\u2014and for the moment, there is no apparent way around it.<\/p>\n

The most obvious reason is that energy companies don\u2019t want to spend money on exploration when prices are so disappointingly low. Many of them simply can\u2019t afford to spend on exploration if they want to survive in today\u2019s price environment. Ironically, their long-term survival can only be guaranteed by further exploration spending.<\/p>\n

A lot of costly projects have been shelved since the summer of 2014 when oil prices started falling, with the initial investments basically written off. Reviving these projects will cost more money. Where this money will come from is unclear\u2014there is no certainty where oil prices are going in the near term, let alone any longer period, and the European Commission today forecasted $41\/barrel oil for the rest of this year and just over $45 for 2017.<\/p>\n

Another part of the answer to the question, \u201cHow did we get ourselves into this mess?\u201d has to do with the knee-jerk reaction of E&Ps in times of crisis. That knee-jerk reaction is generally \u201cfire at will\u201d. Layoffs in oil and oilfield services are piling up at speed, well into six-figure territory to date. Cost-cutting has become the daily mantra of oil companies, and it\u2019s easy to see why.<\/p>\n

Oil dived more than 75 percent over a year and a half \u2013 that\u2019s a hard blow to withstand. However, those laid off as part of the E&Ps\u2019 coping mechanism will not sit around and wait to be rehired at the first opportunity.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A 4.5-Million-Barrel Per Day Oil Shortage Looms: Wood Mackenzie A\u00a0report\u00a0by Wood Mackenzie has warned the world may face a daily oil shortage of 4.5 million barrels by 2035. The amount represents around half of the global consumption\u00a0estimate\u00a0of the International Energy Agency (IEA) for 2016. In other words, a true crisis is looming\u2014and for the moment, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[416,433,13719,2668,2292,5332,13720],"class_list":["post-20413","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-iea","tag-international-energy-agency","tag-irina-slav","tag-oil-exploration","tag-oil-shortage","tag-oilprice-com","tag-wood-mackenzie"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20413"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20413\/revisions"}],"predecessor-version":[{"id":20414,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20413\/revisions\/20414"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}