Oil and gas are the most important natural resources known to mankind. For most societies in the world, oil and gas are the principal natural resources that fuel their economies.
In this great age of communication and technology, do we need to be concerned about a natural resource like oil? Simple. Nearly 98% of everything you have or do is in some way related to crude oil. Heat for your home, patrol for your car, 1.5 litre plastic bottles for soft drink, and petroleum jelly are just a few examples of products created from crude oil.
As democracy and capitalism are spreading around the world, global oil consumption is at record levels. Throughout Latin America, Russia, India, China and Asia, economic growth is accelerating at a remarkable pace.
In these countries, more than two billion people, or more than 40% of the world's population, are suddenly entering the age of consumerism. Thanks to American movies, TVs and VCRs, they have seen what the rest of the world has and they want it all. "They want McDonald's french fries. They want Coke. They want Levi jeans. They want Caterpillar tractors. They want cars, cameras, mouthwash, homes, toothpaste, Tide, aspirin and ten thousand other products we take for granted. "In vast regions of these countries, they're starting from the raw basics of modern life. They need electric power, running water, sewage treatment plants, bridges, tunnels, roads, cities -- you name it. "And oil is the one commodity absolutely essential to this tidal wave of global growth. It's literally the blood supply of capitalism. If you're a developing country, you need all the oil you can get to drive your trucks, your cars, your planes and ships. You need oil to run your factories, machines and power plants so necessary to a modern industrial economy. "What we're seeing is the first simultaneous, worldwide economic expansion since the late 1970s. But this time, many newly industrialized countries are joining the party and importing an unending procession of super-tankers laden with black gold.
An immense market and the promise of continuing growth are why oil and gas is such a sure participation opportunity. The growth of the oil and gas will be determined by the laws of supply and demand.
By year 2030 the population of cars in the world will increase 50%
It took us 125 years to use the first trillion barrels of oil. We’ll use the next trillion in 30 years.
“Oil & Gas will continue to be the primary sources of energy at least through the mid-century. Every day we use more than 80 million barrels of oil and close to 300 billion cubic feet of natural gas. That’s what it takes to keep the world running, and by 2030, experts predict it will require about 50% more energy.”
Source: Exxon Energy Outlook 2004