SOURCE: Energy and Capital

January 11, 2007 11:34 ET

Burning 1,000 Barrels of Oil per Second

BALTIMORE, MD -- (MARKET WIRE) -- January 11, 2007 --By the time it takes you to read this article, say two minutes or so, the world will have consumed nearly 120,000 barrels of oil. Fact is, the world currently burns about 1,000 barrels of oil per second -- equal to the volume of five large tanker trucks. And this is just the beginning.

In just eight years global oil demand will rise by 13.3% to nearly 100 million barrels per day, according to figures from the Energy Information Administration. After that, the EIA predicts another 20.4% increase through 2030.

These skyrocketing increases in demand wouldn't be a problem, barring one major dose of reality: oil is finite.

World-renowned investor and stock picker Michael Schaefer says in his latest oil report, "Since 1859, we have consumed 1.5 trillion barrels of oil. And with our forecasted rate of consumption, it will take only 20 years to consume another 1.5 trillion. In the past two years alone we've consumed over 60 billion barrels of oil -- and that rate's about to take off."

Schaefer's report, "The Truth About Oil," explains in detail why he thinks we're never going to see oil at $40 a barrel again, how we suddenly found ourselves in this mess, and where oil is headed in the future.

"The last domino is about to fall," explains Schaefer, "The number of giant oilfield discoveries has declined dramatically since the 1960s. The large reserves and production capability of these fields are essential to increasing world oil production. Unfortunately, since 1990, there have been few giants discovered in the world -- a total of 35 actually -- and none of these have a production capability above one million barrels per day."

And that's just the beginning of it.

Twenty years ago, 15 fields had the capacity to produce more than one million barrels per day. Today only the world's four largest oil fields can produce that much. And three of those four fields are in confirmed production decline, including Saudi Arabia's Ghawar, the world's single largest producing oil field.

Schaefer's three decades of investing experience tell him that "oil prices are just taking a breather right now. They should resume their march higher in the coming months."

Schaefer is offering his newest report, "The Truth About Oil," for free. You can access his report by following this link:

Energy and Capital is a daily advisory on the fast-moving profits in the energy sector, written and edited by some of the biggest names in natural resource investing today. This report was filed by Luke Burgess, editor of Energy and Capital, and was published by Angel Publishing.

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