IEA asks for hike in oil production

Sorry...this is what it is like when you've reached peak oil. Learn to live with it and buy the Canadian junior oils that are in bear market territory.

May 19, 2011

By OGJ editors

HOUSTON, May 19 -- The International Energy Agency’s governing board issued a statement during its regular quarterly meeting on May 19 appealing to suppliers to provide more oil to the market. IEA said it is prepared to use all tools at its disposal, which include releasing strategic oil reserves.


While the Paris-based agency did not name any particular oil suppliers in the statement, the world’s spare oil production capacity lies within the Organization of Petroleum Exporting Countries.


IEA, considering oil market developments and their impact on the global economy, noted that oil prices stand at elevated levels driven by market fundamentals, geopolitical uncertainty, and future expectations and cited growing signs that the rise in oil prices since September 2010 is affecting economic recovery by widening global imbalances, reducing household and business income, and placing upward pressure on inflation and interest rates.


As global oil demand increases seasonally from May-August, there is a clear, urgent need for additional supplies on a more competitive basis to be made available to refiners to prevent a further tightening of the market, the statement said.


The agency warned that additional increases in prices at this stage of the economic cycle risk derailing the global economic recovery and are in the interest of neither producing nor consuming countries. Especially vulnerable are oil-importing, developing countries.


“The governing board urges action from producers that will help avoid the negative global economic consequences which a further sharp market tightening could cause, and welcomes commitments to increase supply. We stand ready to work with producers as well as nonmember consumers; in this constructive spirit, we are prepared to consider using all tools that are at the disposal of IEA member countries,” IEA said.

The bear market in Canadian juniors

The Canadian junior market is acting like gold is at $400 and oil at $35. Investors are selling shares to put food on the table. Here is an example of no interest in the gold juniors:

Riverstone withdraws $15-million public offering

2011-05-17 16:51 ET - News Release


Mr. Michael McInnis reports

RIVERSTONE WITHDRAWS PUBLIC OFFERING OF COMMON SHARES

Riverstone Resources Inc. will not be proceeding with the proposed public offering of common shares in the capital of the company, the terms of which were outlined in its news release of May 9, 2011.

Riverstone will continue to advance exploration on its Karma project in Burkina Faso with available funds.

We seek Safe Harbor