Peak Oil - The term Peak Oil is very over used and misunderstood. Peak oil does not mean the end of oil production. Peak Oil is the point where new discoveries and new production can no longer keep up with the decline in current production. The world is currently producing about 88 million barrels of oil per day. It is commonly thought that we will never produce 90 million per day. A well begins to decline when the very first barrel is removed. The more barrels removed the faster the decline. Peak Oil, A Brief Description

Saudi Arabia - The largest oil producer on the planet is also the most secretive about their production and reserves. For 50 years Saudi has been the source the world turned to when there was a shortage of oil. Their seemingly bottomless "oceans of oil" were always there when the world needed oil. That situation has changed and there may be fraud in the House of Saud. Saudi Arabia, Smoke and Mirrors

China - Much is said about China's growing oil demand with consumption in China up +250% over the last four years. China is in a very strong growth mode with GDP pegging somewhere in the +9% range on an annual basis. This is very strong and in a mature economy would be unsustainable. However, China has several things working for them, which will continue to keep demand high. China, A Bear on the Prowl

India - India like China is blessed or cursed depending on your viewpoint but an abundant population. India has 1.1 billon citizens and is awakening from a deep slumber. The rapid acceptance of India as an educated, bilingual, technologically advancing population is stunning. In only a few short years India has accelerated into the 21st century and is rapidly gaining speed. Most analysts feel India will surpass China by the end of the decade and become the dominant economy on the planet. India, The Awakening Giant

Oil Wars - In June-2005 a Chinese General said he expected China to be at war with the United States before the end of the decade. The comment was largely ignored but it is still the truth. Current global oil production is around 88 million barrels per day. Demand is also right at 87 mbpd. There is no slack, no cushion, no fall back position. In 2010 if you need oil to run your country you are either going to have to buy it at market rates, probably well over $250 a bbl, or take it away from somebody else. Oil Wars

$250 Oil - Yes, $250 oil sounds like an impossibility but it is really going to happen. Did you ever think $100 oil would occur? How about $125? If you said no to those levels then I am sure you watched in shock as crude futures hit $147 in  July 2008. Unfortunately that is just a stepping-stone to higher levels. The problem is not that oil does not exist but that not enough oil exists. Up until 2004 Saudi Arabia always stepped into any supply gap and pumped enough to fill the gap and push prices back to reasonable levels. They could do this because they had the four largest oil fields on the planet. Unfortunately those fields have been producing for more than 50 years. You can't suck oil out of one field for 50 years without leaving a really big hole. $250 Dollar Oil Is Just Ahead

Natural Gas - You probably thought Extacy was the most popular drug of choice. I have news for you it is really Natural Gas. The by-product of the oil boom was once thought to be commercially worthless and was flared off (burned on the site from tall towers) just to get rid of it. Gas was so cheap it was not worth collecting and selling. That is past history now and gas prices are soaring faster than oil. Unfortunately gas supplies are not keeping pace with demand. Natural Gas the New Drug

Oil Production - It is very tough to get accurate numbers on global oil production since OPEC chooses not to release any data. However, there are numerous analysts who resort to things like counting tankers and keeping track of the amount of oil off loaded at any given port. The general consensus is that production is approaching 88 million barrels per day as of August 2008. Different factors impact this number on a daily basis as fires breakout, equipment breaks down or terrorists attack. Global Oil Production

Oil Demand - Global oil demand is a very hard number to pin down but it is safe to say that demand will exceed supply very soon. With current production capacity somewhere in the 88.0 million barrel per day (MBPD) range and prices setting new highs every day it is safe to say current demand is very close to that number. Recent estimates for demand growth for 2009 was estimated at +1.3 mbpd. Demand growth was estimated at +1.78 mbpd in 2006. Peak demand in 2008 was expected to be around 88.5 mbpd until $4 gasoline slowed world consumption. This is a far cry from the 76.7 mbpd number we saw in 2003. Global Oil Demand