Warning on cost of climate failure (Page 10)
The IEA forecasts that implementation of new environmental policies would see demand for oil almost 10% lower by 2035 than under current policy commitments. In the draft report, the IEA forecasts oil prices in real terms – adjusted by inflation – at $113 a barrel by 2035 under the new policies scenario, compared with the $135 a barrel forecast in its main scenario.
IEA focuses on Caspian potential (Page 10)
After years of setbacks, the Caspian region could see a “sizeable increase in production and exports”, the IEA says but highlights challenges such as “the sheer scale of the investments needed”, the complexities of building pipelines crossing through several countries before reaching export markets, and technical and regulatory difficulties with some oil and gas projects.
Statoil near deal on China shale gas (Page 23)
Statoil is closing in on a deal to explore shale gas reserves in China in spite of tensions between Beijing and Oslo over the award of the Nobel Peace Prize to a Chinese dissident. By some estimates, shale gas has more than tripled the lifespan of US gas reserves to more than 100 years and experts say there is similar potential in China.