Oil crunch worsens as global energy crisis nears
The International Energy Agency (IEA) was set up during the oil crisis of 1973 to serve as an energy policy advisor to the industrialized nations of the West to ensure reliable, affordable and clean energy. It acts as a watchdog on energy security, economic development and environmental protection. As such its short and medium-term forecasts are eagerly taken up by member governments and world business communities alike.
The IEA's mid-term oil market report of July 9 issued a warning that the world will be increasingly experiencing an oil supply crunch with prices to soar to unprecedented levels over the next five years.
The basic facts are that demand for oil will rise by 2.2 percent a year between now and 2012 - up from a previous forecast of 2 percent - as the world's economy expands at 4.5 percent a year.
