Gas is on the slide as well as oil prices to some extent which is good; the bad news is it brings on once again apathy to the problem. Fall will provide another spike as heating oil demand will start to kick in and the Olympics in China ends. A great deal of world demand drop is based on the month before the Olympics China basically shut down a great deal of its infrastructure to clear the smog and pollution from the air around Beijing (CNN).
One other major announcement this week is that Indonesia may deplete their entire oil reserves in ten years (Daily Times). Not reach a peak, not decreased production, but entirely run out of domestic supply. In addition to that the situation may lead the country to exit OPEC as membership in the cartel is no longer needed, and in fact as a net importer now stand in opposition to most of OPEC’s practices (BBC).
It is estimated Indonesia now produces less that 1 million barrels per day, down from 1.5 million barrels per day in 1999 (US Embassy). The region it supplies (Greater Indonesia) is believed to use nearly 1.4 million barrels per day with growth of roughly 3 percent per year.
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