LISBON Feb 27 The International Energy Agency
fears that an expected recovery in oil demand from 2010 and oil
project cancellations due to low crude prices and the credit
crisis will mean no spare oil capacity at the end of 2013.
"That is our concern. Investment, investment, investment,
that is what we are asking," IEA Executive Director Nabuo Tanaka
said at a conference in Lisbon on Friday.
The Paris-based IEA, which advises 28 industrialised
countries, earlier this month said global oil demand would drop
by 980,000 barrels per day (bpd) this year but would rise again
by about 1 million bpd in 2010 with an expected economic
Tanaka said that there was no room for complacency on spare
"We now see many cancellations or postponements of supply
investment projects...and we learned the lesson last year when
we didn't invest, the market became volatile and oil prices
reached $147 per barrel," he said.
He added that supply from producing oil fields will decline
dramatically, and that to offset the decline by 2030 "we need 45
million barrels per day of new capacity, or the equivalent of 4
Regarding current oil prices, Tanaka urged the Organisation
of Petroleum Exporting Countries (OPEC) not to seek rapid rises
in oil prices by cutting supply.
"We hope OPEC will take a look at the market. Our concern is
the global economic recovery and I believe OPEC's concern is the
same, so I think they will take a flexible decision. At least
that is what we want to see happen," he said.
Tanaka added that his main challenge was to persuade China
and India to join his organisation, as "without engaging
emerging countries like those we cannot maintain energy
(Reporting by Shrikesh Laxmidas; Editing by Keiron Henderson)