The difference is that the IEA’s report is not a future prediction of Peak Oil, it’s an acknowledgment that we’ve already passed the peak: it’s a done deal.

The data doesn’t lie, 2006 was the peak. Crude production is now, and has been, in decline (for four years now).

The only question, which the IEA report focuses on, is what the market clearing price will be going forward. Since supply is and will continue to fall, gently at first, then more steeply as the years progress, the price will be determined by the demand side of the equation.

If the US goes the way of the EU and Japan and rapidly increases fleet efficiency, oil prices may remain relatively affordable (under $120/bbl). The good news on this front is that the industrialized nations have all mandated steep efficiency gains, including the US and China, of 35 MPG or better. This will definitely help keep pump prices in the US within the $4-5 range for some time.

Manufacturers are absolutely taking the queue, with dramatic increases in efficiency for all vehicle types and sizes. In the out years though, a dramatic shift away from oil will be needed or pump prices will be economically ruinous.

Good news is that this year, Solar Power is rising much faster.
If the cost of Solar & Wind decreases while the Coal & Oil increases, the parity will be hit in next 4 – 5 years.

Meanwhile Cadillac is introducing a new concept with V3 engine. Its a range extender like Volt. Awesome pictures are available in
http://www.insideline.com/cadillac/cadillac-urban-luxury-concept-2010-los-angeles-auto-show.html

And Prius is launching 2 more hybrid models. Lets hope our Oil consumption goes down with all these vehicles

The oil companies claim that the World Oil Supply is 86 million b/d, but thats after including Natural Gas Liquids (Ethane, Propane, Butane) which is 8 million b/d, Bio-fuels which is 2 million b/d and synthetic and polar oil which is rest.

If we take the crude oil alone then its only 73 million b/d and the peak was hit in 2005. Peakoil has already made an impact on advanced countries. US auto sales which used to be more than 16 million is now only 12 million.

No wonder, many countries are moving towards alternative fuel vehicles. Worldwide there are
18 million flex-fuel vehicles
14 million LPG
12 million CNG
3 million Hybrids

Also the countries like Russia, Japan, Korea which use Oil for power generation are moving to oil fuels like Natgas, nuclear, coal, wood, etc. US has already done this smartly.

Pretty soon, Coal will be largest source of energy, but IEA does not want to say this.

In another front, price of solar photovoltaic panel price is dropping rapidly and now it stands at $3.51 / watt.
http://www.solarbuzz.com/

But in transport sector alone, Oil will continue to increase.

The world needs the super powers to stop dragging their heels and start mass producing electric cars, trains, planes, boats, and Geothermal Power Plants, solar panels, and wave energy to lessen the impact on oil and natural gas so we can use our natural fossil fuels for more productive purposes. We are loosing the war on global warming, the cut down on global pollutions, and dangerous nuclear waste when we burn our fossil fuels for energy.

The world needs the super powers to stop dragging their heels and start mass producing electric cars, trains, planes, boats, and Geothermal Power Plants, solar panels, and wave energy to lessen the impact on oil and natural gas so we can use our natural fossil fuels for more productive purposes. We are loosing the war on global warming, the cut down on global pollutions, and dangerous nuclear waste when we burn our fossil fuels for energy.

But still, it’s about time we seriously started planning for Peak Oil, and some viable options we can begin switching to.

Here are some great ideas: http://bit.ly/aC9mXQ