New Oil Not Keeping Up With Demand

April 18, 2007 – Vol.12 No.4

NEW OIL NOT KEEPING UP WITH DEMAND.

Here’s the gasoline saving tip of the day: If you’re driving around with roof racks on your car or truck - particularly the crossbars - take them off. Immediately. The aerodynamic resistance could be costing you one mile per gallon or more of fuel efficiency.

You should be saving every drop of gallon you can given the climbing cost of gas and the latest survey from Energy Intelligence, a 50-plus-year old global energy information service provider.

The title of the survey says it clearly: Survey Shows World Oil Reserves Are Not Being Fully Replaced. The world is currently producing more oil annually than it is replacing with new reserves.

Energy Intelligence, in its PIW Reserves Survey, points out that contrary to other studies showing that oil reserves on the planet are rising, its assessment shows a stagnation and small decline in reserves. The company notes that global oil reserves have declined during the past two years by 13 billion barrels, or 0.9 percent, to 1.459 trillion barrels at the end of 2006 on a "proved plus probably" basis.

The company survey includes crude oil that can be economically recovered at today’s prices. Reserves include liquid hydrocarbons, natural gas liquids, tar sands and crude oil.

High oil prices and more spending on oil exploration have not yielded significant new oil discoveries. On a nation-by-nation basis only 8 of 20 top producers saw increases in reserves, the rest were flat or in decline. Brazil and Kazakhstan saw big reserves increases

The PIW Survey confirms suspicions of overstatement of reserves by Kuwait and other OPEC nations: They don’t have what they say they have.

On the other hand, Russia and some other non-OPEC nations tend to understate their reserves estimates. They have more than they say.

Energy Intelligence uses a broader definition of oil reserves than other surveys based on public sources.

Oil is getting more and more difficult to get. Take the roof racks off and use a light foot on the accelerator pedal; there’s the second gas-saving tip of the day.

Visit Energy Intelligence at http://www.energyintel.com