The Crude Reality

Since the price of crude oil is a popular topic around the world, I thought I would present some interesting statistics.

OPEC estimated that world demand for crude oil will increase to 87.09 million barrels a day in 2008. That would mean a 1.5% increase over 2007. If this 1.5% annual increase continues, in 5 years the world demand will be approximately 94 million barrels a day. Where will the extra 7 million barrels come from? Which country can supply that? The answer: None.

Here are the top exporters and the amount of crude oil they export:

1. Saudi Arabia (OPEC) 8,651,000 (barrels a day)

2. Russia 6,565,000

3. Norway 2,542,000

4. Iran (OPEC) 2,519,000

5. United Arab Emirates (OPEC) 2,515,000

6. Venezuela (OPEC) 2,203,000

7. Kuwait (OPEC) 2,150,000

8. Nigeria (OPEC) 2,146,000

9. Algeria (OPEC) 1,847,000

10. Mexico 1,676,000

11. Libya (OPEC) 1,525,000

12. Iraq (OPEC) 1,438,000

13. Angola (OPEC) 1,363,000

14. Kazakhstan 1,114,000

15. Canada 1,071,000

Remember, all countries use crude oil, so the export amount is less than the actual barrels of crude oil produced. For example, Russia consumes about 3,000,000 barrels per day. They can produce around 9,500,000 barrels a day. Therefore, only 6,500,000 is available for export. Another fact that might be influencing high crude prices is Libya, Mexico, Algeria, Venezuela, Norway, Russia, and possibly Saudi Arabia have reached their peak oil production. They simply cannot produce more barrels of oil per day.

Here are the top importers of crude oil:

1. United States 12,220,000 barrels a day (Stupid SUVs)

2. Japan 5,097,000

3. China 3,438,000

4. Germany 2,483,000

5. South Korea 2,150,000 (Korea needs to become friendly with Kuwait. They're the perfect match.)

6. France 1,893,000

7. India 1,687,000

8. Italy 1,558,000

9. Spain 1,555,000

10. Taiwan 942,000

11. Netherlands 936,000

12. Singapore 787,000

13. Thailand 606,000

14. Turkey 576,000

15. Belgium 546,000

So, what will happen? Will the world decrease consumption and demand? Alternative energy and fuels? lol If the world didn't change in the 1970s during the oil crisis, why should I expect it to change today? I don't think so. That's why a lot of analysts are predicting $150-$200 for a barrel of crude oil. That's why I'm not selling my oil company stocks. Even if a barrel of oil drops to $100, those companies will still make hefty profits. If it jumps to $150, then I'll be celebrating. =)

At $200 per barrel, a gallon of gas in the U.S. will cost around $6. A liter of gas in Korea will cost around 3,000 won. Is that shocking? Well, in Turkey they already pay $11 a gallon or 2,750 won per liter.