OIL CRUNCH COMING SOONER THAN EXPECTED

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FINANCIAL TIMES - The world is facing an oil supply "crunch" within five
years that will force up prices to record levels and increase the west's
dependence on oil cartel Opec, the industrialized countries' energy
watchdog has warned. In its starkest warning yet on the world's fuel
outlook, the International Energy Agency said "oil looks extremely tight
in five years time" and there are "prospects of even tighter natural gas
markets at the turn of the decade".

The IEA said that supply was falling faster than expected in mature
areas, such as the North Sea or Mexico, while projects in new provinces
such as the Russian Far East, faced long delays. Meanwhile consumption
is accelerating on strong economic growth in emerging countries. . .

Lawrence Eagles, head of the IEA's oil market division, told the
Financial Times: "If we get to the point were there is insufficient
supply, the only way to balance the market will be through higher prices
and a drop in demand."

http://www.ft.com/cms/s/2d97d75a-2e0c-11dc-821c-0000779fd2ac.html

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