Arwen, the world is using around 72 million barrels of oil per day and about 13 or so million "barrels" of natural gas equivalents.
There is at least 700 billion barrels of proven reserves in Iraq and Venezuela alone. Toss in Canada and Saudi Arabia and you can safely double that number.
And that is just for oil. With the new technology to tap shale natural gas, there is no point in even trying to guess the world's proven reserves. The U.S. went from having a few years left of natural gas left to having one hundred years. You can throw peak oil out the window now when it comes to natural gas.
Five years ago, the concern was that Canada was using a ton of natural gas to develop oil. Now, there is a huge natural gas field in Canada that is not being developed because there is no place left to store said gas. I have read that all the natural gas storage facilities in the U.S. are full.
Proven reserve numbers have always been a bogey man. I read back when I was a kid in 1979 that the world was going to run out of oil in six years. Here we are thirty years later producing more than ever. The same will likely be true in 2040.
Hi Doc, thanks for your insight as usual.. Maybe its halfway. i mean ....not 5 years not 50 ...but in between?? The market is correcting today as you predicted, i only sold one position(merck) the other day, better than nothing. To replace it i was thinking HALiburton or citigroup.. some time in the near future. I am still cautiously optamistic.
I am exiting my NG positions (chk, etc) because I see no end to the glut. I am am holding my pipeline positions and my alt NG position (clne) because low pricesd NG suggests increasing usage as a coal/oil replacement and the development of alternative uses like VNG.