Bulls n' Bears

Global Resources: Oil

Oil resources is a factor that facilitates our life, allowing us to move our car, heat our homes and to many more features than we will notice only after resolution of global reserves.We can say that when oil resources will disappear,civilization's days are numbered.At the current rate of global consumption reserves would be exhausted around the year 2043.

The oil dependency of our society is determined by the following fact: in 1880 the world production, located almost entirely in the United States was less than one million tons. Today, the production is more than 3,500 million tons.

The three areas that concentrate global production are the Middle East, Russian Federation and the United States, around 70% of the world's oil comes from them.The major oil companies are: Gazprom (Russia),Saudi Aramco (Saudi Arabia) , NIOC (Iran) Exxon Mobil (U.S.),Pemex (Mexico) and  Royal Dutch / Shell (Netherlands).

In my opinion, all these companies known for big profits,will go bankrupt in the next 40 years.The Middle East has the largest and most productive oil fields. These giants were easy to find and they require relatively little investment for exploitation, therefore the cost of producing oil from the Middle East is the lowest in the world.

The current situation of world oil reserves remains a contentious issue being polarized between advocates of 'Peak Oil' and the major oil companies that defend their interests by any means. The former believe that oil production will soon dwindle while the businessmen say that there is enough oil so that could last decades. However, the evidence shows that the proponents of 'Peak Oil' are going to be right.

In my opinion,oil reserves is a real priority for us because the humanity is dependent on them.Just try to imagine our life without oil, and certainly since that time,you will appreciate what the earth gives us.