PeakOil - IMF Chimes in

In this kos diary, Jerome a Paris notes that the IMF has weighed in on the impending global oil peak.

IMF warns investment in oil production and refining is too low to reduce prices

In a draft of the main chapter of its World Economic Outlook, the IMF writes: "Based on current investment plans, production capacity is unlikely to grow enough to outpace future growth in consumption and create adequate spare capacity." (...)

The IMF's report, which will be published on Wednesday, says Opec's ability to lower prices is limited because its cushion of spare oil capacity has shrunk due to high demand, mainly from the US and China. The report predicts that the situation is unlikely to improve in the next five years.

As he points out: "Okay. so we now have the following companies and institutions on record about Peak oil: Chevron, ExxonMobil, the International Energy Agency, and the IMF." Peak Oil isn't just for Tinfoil Hatters anymore. And there are some major forces here, domestic and international, who are making some noise here. It's only a matter of time before the message finally gets some serious legs.

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