pre open, page-15

Dunno chewy,

Just for some perspective this is from ODAC weekly newsletter and before the large gain in German GDP. -



In its monthly oil report the IEA raised its forecast for 2011 demand by 50,000 barrels/day to 86.6 million b/d, but with a significant downward risk due to the economy. The agency, which painted what ODAC considers to be an extremely optimistic supply/demand picture in its recent Medium Term Oil Market Report, also issued a stark warning against tighter regulation and permit delays for deepwater drilling following the BP Macondo oil disaster. To quote, it warns that "Macondo places the ability of the industry to access important new reserves on a knife edge," and further that "Some 30 per cent of existing global oil, and nearly 50 per cent of new supplies by 2015, needs to be sourced from offshore, much of it from deep water." The figures underline the perilous state of new oil production which now relies heavily on risky and expensive resources like the Brazilian pre-salt discoveries, the Arctic, and the tar sands.