About That Energy Crisis...

Just when you thought you could stop worrying about energy (at least for a day or so), here comes the International Energy Agency:

A lack of investment in new sources of oil risks a supply crunch worse than the problems that pushed prices to $147 a barrel this summer, the developed world’s energy watchdog said on Wednesday.

The International Energy Agency warned that cuts and delays in investment that were prompted by the fall in oil prices and the credit crunch had put the world “on a bad path”.

Nate Hagens at The Oil Drum says that "this report shatters the global illusion that oil resources magically turn into cheap flow rates." The Oil Drum has a more detailed look at the report here.

Michael Kanellos at Seeking Alpha says "we're on a collision course with ourselves."

What the IEA is calling for is investment to stave off a much larger supply crunch when the global economy eventually rights itself and demand ramps back up. It is asking governments to take the long view.

Good luck with that.