This is an excerpt from EERE Network News, a weekly electronic newsletter.

January 26, 2005

Growth in Global Oil Demand to Slow in 2005, Says IEA

After a 3.3 percent growth in global demand for oil in 2004, the International Energy Agency (IEA) expects the growth in demand to slow this year to about a 1.7 percent annual rate. According to the IEA's "Oil Market Report" (OMR), published on January 18th, the growth in oil demand will continue to be led by China and developing countries in Asia. See the IEA's "Highlights of the Latest OMR."

A top executive at ExxonMobil Corporation noted on January 11th that the growing world demand for oil and gas is creating challenges for global oil production, because the world's oil and gas fields on average are declining in production at a rate of 4 to 6 percent per year. According to Senior Vice President Stuart McGill, this base decline, coupled with the growing demand for oil and gas, means that the amount of new daily production needed in 2020 is nearly equivalent to replacing all of today's daily production.

"Plenty of oil and gas remains around the world, but it will take the best technology and the most capable and efficient organizations to produce it," said McGill. See the ExxonMobil press release.