Telegraph: “World Energy Crunch”


From Ambrose Evans-Pritchard at The TelegraphWorld energy crunch as nuclear and oil both go wrong:

The existential crisis for the world’s nuclear industry could hardly have come at a worse moment. The epicentre of the world’s oil supply is disturbingly close to its own systemic crisis as the Gulf erupts in conflict…

Libya’s civil war has cut global crude supply by 1.1m barrels per day (bpd), eroding Opec’s spare capacity to a wafer-thin margin of 2m bpd, if Goldman Sachs is correct.

Now events in the Gulf have turned dangerous after Saudi Arabia sent troops into Bahrain to help the Sunni monarchy crush largely Shi’ite dissent, risking a showdown with Iran…

Oil prices have fallen over recent days but it may not be long before the deepening nuclear crisis in Japan and Germany’s decision to shut down seven of its oldest reactors starts to spill over into oil and gas markets

The UK industry taskforce on peak oil fears the crunch will hit at 95m bpd within a decade.

Dr Euan Mearns at the Oil Drum said Fukushima has shattered democracies’ faith in the safety of nuclear power. If Japanese engineers had prevailed despite the worst that nature could muster, it would have vindicated the industry. “Alas, this is not the case. The future of the human global energy system has just changed course with potentially far reaching consequences for civilisation,” he said.

Read more.

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