SOURCE: Energy and Capital

January 16, 2007 10:23 ET

The Truth About Oil

BALTIMORE, MD -- (MARKET WIRE) -- January 16, 2007 -- By the time it takes you to read this article, say two minutes or so, the world will have consumed over 5,000,000 gallons of oil. The fact is, the world currently burns about 42,000 gallons of oil per second -- equal to the volume of five large tanker trucks and by all accounts, this is just the beginning.

In just eight years worldwide oil demand will increase 13.3% to nearly 100 million barrels per day, according to figures from the Energy Information Administration (EIA), the official energy statistics head of the U.S. government. 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: Crude oil is finite.

What that means to you is this: Your entire way of life is about change fast -- and forever.

World-renowned oil and gas expert and investor 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 is 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 Truth About Oil" is Schaefer's follow-up to his 1998 report, titled "Oil Shock," where he predicted and explained how oil prices would spike above $70 a barrel. Today Schaefer is showing investors how the spike in oil is just beginning.

"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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