cars in China and India alone… all burning fuel refined from oil. And that’s not even counting growth in other parts of the world. Now that’s an oil boom! It’s not just about cars. Oil is the catalyst of our civilization. There are approximately 7.5 billion people on the Earth. Oil is about agriculture and food. It is about distribution. It is about raw materials. It is about almost every economic and social transaction that takes place. All we need for the next boom – the biggest oil boom in history – is for demand to once again surpass production capacity. It is not entirely clear when that will happen. But it looks like we are nearer to that point than not… Saudi Arabia claims it could increase production to around 12 million barrels per day, but there’s no proof that’s achievable. It will likely reach a ceiling at 10.72 barrels per day (its all-time high in 2016). OPEC’s production as a whole is in decline. With few exceptions, OPEC members are producing at peak levels already. It is not clear if further investment will change the decline going forward.
Russia produces 10.91 million barrels per day as of March 2016. OPEC and Russia account for 40% of world oil production. It’s doubtful that Russia and Saudi Arabia have excess capacity now.
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