OIL DEMAND and the effects on the Global Stock Market
HOOKED ON CRUDE OIL, THE REAL STORY.
Without oil, the world shuts down. We burn through 27 Billion barrels per year. Even 90% of the chemicals we use for farming, making drugs and making plastics... all come from oil. It's a habit we can't quit. Some of us commute a hundred miles per day to and from work. Six billion people. Driving 700 million cars. Globally, cars alone outweigh humans by 4 to 1. Every day, each car uses four times more energy in fuel than people need in food. At the airport, a thousand planes a day take off and land, each carrying as much as 24,000 gallons of fuel. Passenger jets alone burn about 1,200 gallons of fuel each hour!
YOU SEE THE POINT. As long as we can keep that oil coming, we've got no problem. Life goes on. If that source of cheap oil disappears... we're talking catastrophe. It's nearly unthinkable. And yet as early as July 2, 2006, that's exactly the kind of cataclysmic disaster you can expect. It's virtually guaranteed...
The New Oil -'Cheap' At $150 a Barrel? This isn't a 'maybe' scenario. There are no politics to fix. No quotas to double or contracts to sign. 'E-Day' - the day when cheap oil disappears forever - IS coming. IT'S VIRTUALLY GUARANTEED. Over the last five years, the world burned 27 billion barrels per year. But the oil industry only discovered 3 billion new barrels per year. How long can you use up nine times what you're finding in replacement? Not long!
In the 1930s, a geophysics professor at Columbia University made a discovery worth billions of dollars to oil investors and oil companies. He discovered how a liquid under pressure - like oil - can get trapped under hard rock. He also discovered how to get it out. And oil companies STILL use his discovery to find and recover millions of gallons of oil. Oil they otherwise would have missed completely. But then Dr. Marion King Hubbert made another discovery. In 1956, Hubbert discovered that oil fields CHANGE dramatically as you drain out the oil. At first, barrels of crude come squirting out of the drill hole. That's when times are easy. But after years of pumping, pressure disappears. Suddenly, the REST of the oil gets harder and more expensive to draw out. When your entire business depends on how much oil you have in reserve, this is a very big deal. In fact, the biggest deal. When you get to the halfway drainage point - the 'peak' - the cost of getting the rest of the oil out skyrockets. Supply enters a permanent downward spiral. And pretty soon you have to look somewhere else if you don't want to run out of petroleum. In 1956, Hubbert worked for Shell Oil. His bosses BEGGED him not to release his controversial 'peak oil' findings. But during a speech, he painted a chilling picture nonetheless... for a room full of oil executives and engineers. He told them that by 1970 the United States - the world's largest oil power - would hit its own devastating oil production 'peak.' Now, you've got to picture this. At the time, America could crank out more oil than any other country in the world. So nobody believed him. In fact, they ridiculed him. And the controversy that followed nearly ruined his career. Shell even hired other geologists willing to put the peak date in 1990 or even 2010... and Hubbert was all but shunned by the industry bigwigs. But guess what happened. Like clockwork... The United States hit its production peak in 1971! Oil well after oil well across Texas and Louisiana started to dry up. Domestic oil production took a downturn and never recovered. Within just three years, gas and oil prices soared... and U.S. oil imports TRIPLED. OPEC suddenly had an advantage over the United States it had never had before. And the face of oil economics... and oil politics... changed forever. Hubbert had been right. Many people got wiped out financially during the crisis that followed. But it turns out that was only the beginning! ======================================= http://www.australiansharetrading.com/ the complete online resouse for share trading Please use this aricle, you have my prior consent to do so, just don't change a thing.australian share trading By Nik Halik => http://www.australiansharetrading.com offers share trading news ===========================================
About the author: None