there is more oil used than is being produced. So, the large worldwide inventory is slowly being
Oil demand was revised up for 2016 for the third time. Oil demand was up 1.6 million
barrels per day over 2015. This demand increase is projected to continue for many
many years. Just so you know – 1.6 per day equals 584,000,000 barrels per year.
With the severe drop in oil and gas investment over the last two years, the inventory overhang
will evaporate – and we will be in deficit. That creates the oil price spike that comes after the
crash. That is how it happens. We are not gleeful about this inevitable event - we are
For years now, it has been China’s increase in demand that has driven the oil story. Soon it
will be India. World demand will soon be 100 million barrels per day. We will need a lot
of exploration to feed that beast.
We will need AmericanOilmen and AmericanOilwomen.