In a few years, the global production of conventional oil will fall, while the global demand continues to rise. The resulting shock of this structural oil famine is inevitable, so great are the dependency of our economies on cheap oil and. related to the first, our inability to wean ourselves from this dependency in a short period of time.
Royal Dutch/Shell Group's overstatement of its proven reserves of oil and natural gas by 20 percent may be enough to prompt an inquiry by the U.S. Securities and Exchange Commission, an SEC spokesman said.
Royal Dutch/Shell Group's disclosure that it overstated its proven reserves by 20 per cent rattled energy investors and is raising questions about whether the oil industry as a whole has inflated its prospects.
Geologists and analysts have been saying for some time that estimates of global oil reserves may be dangerously exaggerated. The oil industry has been gripped by scandal since Royal Dutch/Shell twice this year downgraded its proven oil reserves by 20 per cent, or nearly 4bn barrels. Shell may not be alone. Other companies and even governments have hyped up the estimates of how much oil they have, which is a vital factor in measuring their economic health.... About four-fifths of the world's known oil reserves lie in politically unstable or contested regions.
The Shifting Terms of Trade Between Grain and Oil. In 1970, a bushel of wheat could be traded for a barrel of oil in the world market. It now takes nine bushels of wheat to buy a barrel of oil.
Russia, now the second largest oil producer in the world, warns that its oil supply will last only until 2010.
With US Treasury secretary John Snow ratcheting up his criticism of Opec, it is clear the Bush administration is alarmed about rising oil prices.