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Oil Officials See Limit Looming on Production

Wall Street Journal Original article ›

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hOw the conventional thinking about the availability of oil to supply ever increasing demand is changing. At some point oil availability will not satisfy increasing demand in the very near term. Current production is 85 million barrels a day, some experts see the supply ceiling at 100 million barrels a day and that ceiling could be reached as demand increases by 2012. The reasoning is based not on what is under the ground but on what is likely to happen considering all the factors, political factors with countries preferring to leave oil in the ground, shortages of engineers and high prices of drilling rigs and equipments creating constraints, and the inflation in exploration costs leading to underinvestment.


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