{"id":527103,"date":"2010-04-14T07:27:02","date_gmt":"2010-04-14T11:27:02","guid":{"rendered":"http:\/\/climateprogress.org\/?p=22964"},"modified":"2010-04-14T07:27:02","modified_gmt":"2010-04-14T11:27:02","slug":"global-oil-demand-hits-new-high-%e2%80%94-threatening-both-economic-and-national-security","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/527103","title":{"rendered":"Global oil demand hits new high \u2014 threatening both economic and national security"},"content":{"rendered":"

<\/em>The International Energy Agency (IEA) released new findings Tuesday April 13 that global oil demand will reach a record high level in 2010<\/a>, as the world economy recovers and developing nations\u2019 demand for oil grows to new heights.\u00a0 IEA forecasts<\/a> that average annual world oil demand will have rebounded 2% from 84.9 million barrels per day (mb\/d) in 2009 to 86.6 mb\/d in 2010.\u00a0 Susan Lyon<\/a>, Special Assistant on CAP’s Energy Opportunity team, has the story.<\/p>\n

<\/span>In its April 13 Oil Market Report, a monthly update on world oil market trends, IEA forecasts world oil demand growth this year at 1.67 mb\/d, up by 100,000 bpd from its previous forecast.\u00a0 Accordingly, the agency finds that \u201ccrude oil futures hit 18-month highs in early April, with expectations for an accelerating economic recovery.\u201d\u00a0 Since the last oil market report, global oil demand has been revised up by 30,000 barrels per day (b\/d).<\/p>\n

The report warns<\/a> that rising oil prices<\/a> may threaten continued economic recovery:<\/p>\n

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Ultimately, things might turn messy for producers if $80-$100 per barrel is merely seen as the new $60-$80, stunting economic recovery while prompting resurgent non-oil and non-OPEC supply investment.\"prices\"<\/p>\n<\/blockquote>\n

On the supply side, due to lower OPEC output, global oil supply fell by 220,000 b\/d in March as well.\u00a0 The new data also reveals a new trend in global oil refinery throughput: \u201cWhile China, India and Russia all posted record highs in February, European throughputs fell to their lowest level in 17 years.\u201d<\/p>\n

IEA\u2019s report comes on the heels of last week\u2019s 2010 Joint Operating Environment<\/a> (JOE) report by \u00a0the U.S. Joint Forces Command<\/a> (USJFCOM) lays out the energy crunch that lies before us and its likely consequences.\u00a0 The projected growth of overall energy demand for decades to come, led by oil and coal, is alarming to the U.S. armed forces:<\/p>\n

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By the 2030s, [energy] demand is estimated to be nearly 50% greater than today. To meet that demand, even assuming more effective conservation measures, the world would need to add roughly the equivalent of Saudi Arabia\u2019s current energy production every seven years.<\/p>\n<\/blockquote>\n

Without tremendous energy efficiency efforts and a massive shift toward renewable energy, they note that the U.S. and world economies may suffer production bottlenecks as well as regional instability due to resource scarcity and price volatility.<\/p>\n

Furthermore, the JOE (!) also pinpoints climate change as a top 10 security issue<\/a>: \u201cone of the ten trends most likely to impact the Joint Force.\u201d\u00a0 Previously<\/a>, the Department of Defense\u2019s Quadrennial Defense Review<\/a> argued that climate change is a \u201cdestabilizing agent\u201d and the Center for Naval Analysis<\/a> convened a board of military officials who concluded in 2007 that climate change is a \u201cthreat multiplier.\u201d<\/p>\n

To face the dual challenges of energy and climate, we must pass a comprehensive clean energy and climate legislation that will reduce our dangerous dependence on foreign oil<\/a> while also putting a limit on carbon pollution.\u00a0 The IEA reminds us that the \u201creturn of economic growth\u201d is delicate and requires reducing our vulnerability to oil price spikes and supply disruptions.<\/p>\n

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