Global Oil Supplies Diminishing

Could diminishing oil supplies doom global economic recovery? According to Fatih Birol, the chief economist at the International Energy Agency, global oil resources are declining at a significantly faster rate than previously forecast. In an interview with The Independent, Birol says that of the 800 oil fields studied, which make up threequarters of the global oil supply, most have already passed their peak production. Oil-rich Middle Eastern nations such as Saudi Arabia can expect an economic boom in the coming years, he added. Meeting demand is simply impossible, Birol said, pointing out that "six Saudi Arabias" would be necessary to meet the estimated amount of oil needed in 2030. The global economic recovery will be adversely affected by the looming oil crisis, as the price at the pump will begin climbing in 2010, he predicted.