15-01-08 Oil producers need to pump more funds into projects to lift their production capacity to meet growing world demand and avert a possible supply shortage, according to the International Energy Agency (IEA).
Its figures showed oil demand could overshoot supply by more than 12 mm bpd in 2015 if the Middle East and other key producing areas do not invest enough in capacity expansion plans.

Fatih Birol, Head of the IEA’s Economic Analysis Division, said production by non-OPEC countries is now near its peak and most of the output increase should come from the Middle East and other OPEC members.
“I would take this opportunity to tell producing countries, which are concerned about the question of the security of demand, that even with the alternative policy scenario, in which countries implement all the policies they are considering at present, the call on OPEC oil would increase very significantly,” he said.

“Many commentators say that we are too optimistic, but they are forgetting that we expressed in the World Energy Outlook 2007 serious concerns for the next five or six years,” he told. He stressed that global oil capacity should be raised by 37.5 mm bpd between 2006 and 2015 to ensure enough supplies and face growing consumption.
“On the supply side, we looked at all the projects around the world that have been financially sanctioned, and that would represent an increase in capacity of around 25 mm bpd between now and 2012,” he said.

“There would thus be a gap of 12.5 mm bpd between 2012 and 2015, which brings with it the risk of a supply crunch and a sharp rise in prices.”
“Starting from these observations and prospects, we are saying to producing countries that can do it: Please, invest more than you are currently planning to do. And we are saying to consuming countries: Please, use oil more efficiently.”