With a few exceptions, only the Saudis are in the catbird seat. Their cost of production is around $25 per barrel.
As for worldwide supply and demand, production in early 2017 is about 98.5 million barrels per day. Demand is about 97 million barrels per day. Estimates for 2018 aren’t that much different. Not much to get excited about, right?
But here’s the thing...
In the next few years, oil demand will skyrocket. And you need to be in the game!
Here’s why….
The U.S. is the largest consumer of oil on the planet. Our oil consumption is about 7.2 billion barrels per year. That’s about 19.5 million barrels per day. Put another way, there are 325 million Americans that use about 22 barrels of oil per person per year . That’s right. You use about 22 barrels of oil each year. Japan has 127 million people, who consume about 1 billion barrels of oil each year. That’s 11 barrels of oil per person per year . Both the U.S. and Japanese economies are industrialized, and the standard of living is high. We make a lot of stuff, we drive a lot of cars, we watch a lot of TV, and we have air conditioning. Frankly, we are well-off. And we use a lot of oil. There are 1.3 billion people in India... three times the combined population of the U.S. and Japan. Yet India uses just 1.5 billion barrels of oil per year, or about 4.1 million barrels per day. That’s 1.1 barrels of oil per person per year . Now, let’s talk China. There are 1.4 billion people in China. That’s also three times the number of people in the U.S. and Japan combined . The But the total population of both countries is only 452 million people.
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