Developing Nations Near Turning Point
An International Energy Agency report released Monday notes that not only are OPEC countries nearing their lowest ever spare capacity, but developing nations are about to reach a kind of critical mass for oil demand. According to the Dallas Blog:
Demand for oil products, especially transportation fuels, is increasing rapidly. One can place blame on all those developing nations whose populations have been approaching the crucial $3,000 per capita GDP level – that pivotal moment when, as revealed by the IEA, “a middle class emerges, eager to purchase cars, fly in airplanes, install air-conditioners and, more generally, use energy consuming products. ‘People can’t blame a lack of refinery capacity, the IEA claims in refinery upgrades is proceeding apace; and doesn’t appear likely to be a difficulty in the near future. Yet overall, supply of the raw product – gas and oil – is having a harder and harder time to keep up with demand.
This is yet another indication that peak oil is upon us, ensuring higher fuel prices at the pump in the near future.