Gulf spill and global oil production

offshore oil rigThe International Energy Agency, in its monthly Oil Market Report, says the Gulf of Mexico spill is a potential “game changer” for oil supply, possibly restricting figure sub-sea oil development and limiting supply.  But Professor Cutler Cleveland, director of the BU Center for Energy and Environmental Studies and editor-in-chief of the Encyclopedia of Earth, see it differently — noting that loss production from the Gulf of Mexico would be at best point-4-percent of global oil production or “dust in the wind.”

“As important as the GOM is to U.S. oil production and to Gulf state economies, it is a pittance in the world market.  U.S. production decisions have negligible impacts on world oil markets, and Middle East producers could easily offset the projected shortfall.”

Contact Cutler Cleveland, 617-353-3083, cutler@bu.edu

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