As if we needed anything more to worry about, we read today in The Guardian that the U.S. has pressured the International Energy Agency (IEA) to lie about the level of worldwide oil reserves. Ostensibly, this was done because revealing the true level of reserves would cause a financial panic since, well, we don’t have much of an alternative to turn to.
The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.
The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves, the Guardian reported.
This is important because once the economy improves, and it becomes apparent that global oil production cannot meet increased demand, the radically increased price will wreak havoc with the world’s economies. We’re already weakened from the Great Recession. A dramatic run up in the price of oil will cause many jobs to disappear overnight just as consumer goods, food and energy costs rise.
And we’re what, still a full year from the first wave of plug-ins to come to market?
I’ll be curious to see how the media plays this one. Do they ignore it, or do they begin to inform people that we’re about to go up a stinky creek, and um, you better take a paddle with you.
In the Guardian: “A second senior IEA source, who has now left but was also unwilling to give his name, said a key rule at the organization was that it was ‘imperative not to anger the Americans’ but the fact was that there was not as much oil in the world as had been admitted. ‘We have [already] entered the “peak oil” zone. I think that the situation is really bad,’ he added.”
If that comment doesn’t send a chill down your spine, you should read it again.
This report should make the front page of every newspaper, but I fear it will be buried.
All I can say is we better push for viable plug-in cars to get to market sooner than later. Everyone reading this blog should pay close attention to who’s making what kind of EV and be ready to act when they do get to market. Once the peak is evident, it’ll be too late to get one at MSRP.
post by Paul Scott, Plug In America board member
Photo courtesy of flcelloguy under Creative Commons license.