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By Robert Rapier on Nov 8, 2007 with no responses

"Really Bad Days"

The normally optimistic International Energy Agency (IEA) made some very pessimistic comments in Time yesterday:

Oil Prices: It Gets Worse

Oil prices hit a record high of $97 a barrel on Tuesday, but the next generation of consumers could look back on that price with envy. The dire predictions of a key report on international oil supplies released Wednesday suggest that oil prices could move irreversibly over the $100-a-barrel threshold in the not too distant future, as the global economy faces a serious energy shortage.

In a marked change from its traditionally bland, measured tones, the IEA’s 2007 report says governments need to make urgent, bold decisions on energy policy, or risk massive environmental and energy-supply crises within two decades — crises and shortages that could spark serious global conflicts.

“I am sorry to say this, but we are headed toward really bad days,” IEA chief economist Fatih Birol told TIME this week. “Lots of targets have been set but very little has been done. There is a lot of talk and no action.”

If you have followed the IEA’s forecasts for any length of time, you will recognize this as an incredible about-face by them.