IEA Whistleblower: Oil Figures Distorted To Avoid Panic

Peak oil conspirators will rejoice. The Guardian in the U.K reported that oil figures were distorted by US pressure "according to a whistleblower".

"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".

"In particular they question the prediction in the last World Economic Outlook, believed to be repeated again this year, that oil production can be raised from its current level of 83M barrels a day to 105M barrels. External critics have frequently argued that this cannot be substantiated by firm evidence and say the world has already passed its peak in oil production".

"Many inside the organisation believe that maintaining oil supplies at even 90M to 95M barrels a day would be impossible but there are fears that panic could spread on the financial markets if the figures were brought down further. And the Americans fear the end of oil supremacy because it would threaten their power over access to oil resources," he added.

A second senior IEA source, who has now left but was also unwilling to give his name, said a key rule at the organisation 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.

Read full Guardian article.