Oil Reserves Much Lower Than Officially Reported, Whistleblower Says

Oil Reserves Much Lower Than Officially Reported, Whistleblower Says

Estimates of reserves by watchdog group are said to be grossly inflated.

The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.

The senior official claims the United States has played an influential role in encouraging the watchdog organization to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.

The allegations raise serious questions about the accuracy of the organization's latest World Energy Outlook on oil demand and supply published this week. It is used by many governments to help guide their energy and climate-change policies.

In particular they question the prediction in the last World Economic Outlook, which was repeated again this week, that oil production can be raised from its current level of 83 million barrels a day to 105 million barrels.

External critics have frequently argued that this cannot be substantiated by firm evidence and say the world has already passed its peak in oil production.

A second senior IEA source, who has now left but was also unwilling to give his name, told a British newspaper that a key rule at the organization was that it was "imperative not to anger the Americans" but the fact was that there was not as much oil in the world as had been admitted.

"We have [already] entered the 'peak oil' zone. I think that the situation is really bad," he added.

Scott Doggett:  is an AutoObserver.com Associate Editor.