GLOBAL CLIMATE DEBATE

IEA Says Oil Demand Dropping

The International Energy Agency says its going to downplay its long-term forecast for global oil demand, for the second year in a row.

The Wall Street Journal reports that "demand-management policies" are having more impact than previously expected in the developed world. A drop in industrial activity from the recession is also a big factor in the revision.

Last year, the IEA cut its long-term forecast by 10 million barrels a day and projected that the consumption in 2030 would reach 106 million barrels a day. Cuts for this years forecast are not yet available.

Chairman of IHS Cambridge Energy Research Associates Daniel Yergin says several factors are prompting companies and consumers to rein in energy spending. Among them, the record oil prices in recent years and the battle against climate change.

Just last month, his research group predicted oil consumption in the industrialized world had in fact peaked in 2005. The IEA outlook is scheduled to be released November 10.

Source: Wall Street Journal