Shell: We Will Begin to Run Out of Oil in 7 Years

Something of a “Shell feel” to the blog today. Three stories all about the oil major. First up a story from Davos.
Jeroen van der Veer, chief executive of Shell has warned that demand for oil and gas will outstrip supply within seven years, because conventional supplies will fail to keep pace with population growth and booming economies.
He said: “After 2015, easily accessible supplies of oil and gas will no longer keep up with demand.” The world faced having to choose between two scenarios for the future, he warned.
The first, which Shell calls Scramble, involves nations concentrating on their own energy needs, paying little attention to energy efficiency and continuing to pump out greenhouse gases. The second, dubbed Blueprints, would see countries working together to cut CO2 emissions through the use of taxes and better vehicle, building and fuel design.

Mr van der Veer said: “Shell traditionally uses its scenarios to prepare for the future without expressing a preference but, faced with the need to manage climate risk for our investors and our descendants, we believe the Blueprints outcome provides the best balance between economy, energy and environment.”

With such words of wisdom you can see why van der Veer is the head of one of the largest oil companies in the world. The trouble is his company should have been saying it twenty years ago. Moreover, Shell is still involved in the “Scamble” for Africa’s resources in more ways than one. Just switching off the gas flares in the Niger Delta would be a starters.