Catastrophic Energy Crunch: Global Oil Fields Are In Trouble

Oops, are we in trouble?

The oil fields in the earth are suffering production peak-out, a leading economist recently warned, and the results could mean a catastrophic energy crunch that could highly impact a global economic recovery.

What has caused this?

Dr. Fatih Birol, the chielf economist at the International Energy Agency (IEA) in Paris claims that “higher oil prices brought on by a rapid increase in demand and a stagnation, or even decline in supply could blow any recovery off course.” The IEA assesses future energy supplies by OECD countries.

Birol added: “The public and many governments appeared to be oblivious to the fact that the oil on which modern civilisation depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years – at least a decade earlier than most governments had estimated.”

Over 800 oil fields in the world have been assessed, which covers over 3/4 of the earths reserves, determining that most of them have already peaked. Even more concerning, this drop is going twice as fast as estimated two years ago. Birol further indicated that the concerns continue to rise because of the continued under-investment by oil-producing countries, which will undoubtedly produce an “oil crunch” over the next few years that will significantly jeopardize any hope of recovery from this current economic recession.