Fuel prices will rise in New Zealand

International Energy Agency: deliberately underplaying a looming shortage

Peak Oil closer than previously admitted risking NZ's petrol obsession.

TODAY's earlier post calling for higher petrol prices in New Zealand may already be out of date.

A story broken by the UK's Guardian newspaper suggests the world is much closer to "peak" oil production than was previously admitted.

The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.

Peak oil is when oil extraction hits a maximimum and every subsequent year sees less oil pumped from the ground.

Consumers will be forced to pay ever higher prices for fossil fuels as demand outstrips supply, and each year sees a further decline in production and a wider supply gap.

Analysts suggest oil prices may rise to $400(US) or even $500 a barrel. A six fold increase on today's price.

Comments

[Domestic Executive]

The sooner they get cycling systems sorted out the better things will be as it might help to reduce local motoring.

[Alan]

Peak oil keeps changing.
Depending on who you talk to, we've already passed it, or it's not here for 50 years.
On the one hand the Russians have not reduced they estimate of oil in the ground for 30 years, despite extracting lots, and then we also keep finding smaller pockets - which with a higher oil price are more economic to extract.