We’ve seen it before.
In Chapter 2, we talked about the invention of the Ford Model T in the U.S. As personal vehicles became more popular in the states, BOOM! Oil prices jumped 420%.
In recent years, we’ve seen an increase in sales of SUVs and light trucks. And BOOM! Oil prices jumped 160%.
The U.S. population is tiny in relation to the soon-to-be three billion people in China and India. So… BOOM! There Is Going to Be an Oil Boom
There’s no stopping the economic growth in Asia.
China and India’s combined population is 2.7 billion people. What happens when 2.7 billion people begin to use oil at the rate of the U.S. and Japan? Remember... today, the U.S. and Japan use about 19 barrels of oil per person per year. Even if China and India consume just five barrels of oil per person per year by 2030, that amounts to more than 13 billion barrels of oil... increasing global demand by more than 9 billion barrels per year . The pullback in oil prices since 2014 has beaten down most exploration and production players – the companies that drill the wells and produce the oil and gas. But with demand in China and India set to explode, oil prices may never be this low again. So what are the opportunities? How do we position ourselves to take advantage of the skyrocketing demand for oil?
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