Value Microcaps Motherboard

[cliffvb]

While I haven't personally verified the numbers in the post below, if I can assume the numbers are legitimate it illustrates how tight the world oil supply/ demand is now and leaves me wondering how increased usage from developing countries will be covered:


Take a look at the following comparisons. It may not be valid to extrapolate these numbers relative to China and India, but some modicum of growth is inevitable.

U.S. oil consumption in 1900 – 1 barrel/per person/year
- U.S. oil consumption in 1970 – 27 barrels/per person/year

- Japan oil consumption in 1950 – 1 barrel/per person/year
- Japan oil consumption in 1970 – 17 barrels/per person/year

- South Korea oil consumption in 1965 – 1 barrel/per person/year
- South Korea oil consumption in 2005 – 17 barrels/per person/year

- China’s current consumption – 1.3 barrels/person/year

- India’s current consumption – 0.7 barrels/person/year

Even 1bpd extra demand from China and India would be 5.5mbpd.

The EIA reports 100,000 bpd of slack supply:

According to the U.S. Energy Information Administration, global oil production hit 84.5 million barrels per day in May (the latest numbers available) and demand in the first quarter averaged 84.4 million. That leaves a margin of about one-tenth of one percent."