Buffalo Boy's Blog

The International Energy Agency, despite the economic crisis we are in at the moment is calling for $26.3 trillion  worth of investment in new and sustainable fuels in order to keep pace with growing demand. World demand is still growing despite the economics due to India and China.

$26.3 trillion sounds like a lot, but globally over the next 20 + years is not that much. Its a small investment given the fact that people will be put to work to install new energy infrastructure to support things such as natural gas, solar and wind power.

Oil, despite the drop off in prices is not going to be cheap for long. They are predicting prices to average $100 again soon. That would bring gasoline back up between $3.50-$4.00 a gallon consistently.

"Future sources of oil, the cost of producing it and the price consumers will have to pay for it are extremely uncertain, the IEA said."

Probably not the news we want to hear but really, if we don't invest in new infrastructure and energy sources like solar and wind, we are asking for even bigger problems than coughing up the money now. Of course the oil companies if they truly consider themselves "energy" companies should be forking over a good chunk of that $26.3 trillion considering the obscene profits they take in.

The fact is, due to the down turn of credit markets, there have been little if any new investments in energy lately and when the economy does turn, there are going to be supply problems.