Oil prices are likely to rise following today's oil refinery explosion and fire at Amuay in north-west Venezuela, according to ACT Peak Oil. The fire killed 26 people, injured 80 and will delay production for two days.
The Amuay Refinery is part of the Paraguaná Refinery Complex which is the second biggest in the world. Amuay produces 650,000 barrels of oil a day, about two-thirds of Paraguaná's nearly one million barrels a day. Global production of oil is 89 mbd.
President of ACT Peak Oil, Ms Jenny Goldie, says most refineries are already working at full capacity and there are few means to make up the shortfall in supply created by the closure of the Amuay Refinery.
"The inevitable consequence will be an increase in the price of oil," says Ms Goldie. "While the refinery may re-open in two days, we may expect reduced production for some time until repairs are made.
"Despite the recent increase in oil shale production, largely in the US, the world is vulnerable to shocks in the oil supply line. Even the major suppliers like Saudi Arabia are pumping as hard as they can."
Ms Goldie says there will be little joy for Australian motorists who are already experiencing high prices at the pump.
/ Peak Oil fossil fuel hydrocarbon CO2 carbon dioxide greenhouse green house gas global warming climate change petroleum /
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