Oil consumption

The subject of oil consumption, as it relates to the global supply of oil is one that has been somewhat ignored in the calculation of oil reserves. Yet, oil consumption is the figure that is most likely to trip up many of even the most knowledgeable forecasters.

The study of the remaining reserves of world oil figures, even if totally accurate show that production is remaining at a steady though small upward growth. The figure which has changed drastically even over the last decade is the oil consumption.

Several factors have affected the oil consumption figures. First is that society is increasingly dependent upon industrialization in order to provide economic stability in the political climate. Industrialization means increased dependence upon oil and petroleum products, not only for energy to power the machines and equipment, but for the basic building blocks of the product.

When there were only a few industrialized nations, this oil consumption figure was manageable, but today, new societies and nations are joining the ranks of power consumers each day and most are coming onto the scene not gradually, but with expectations of higher level technology that they see from the industrialized nations.

Oil consumption in countries such as China and North Korea is increasing at an exponential rate, and the forecasts simply have not taken this into account in viewing the depletion of oil reserves. Price increases as the gap between the oil consumption rate and the oil production rate grows are inevitable, but price increases may not be the only problem. Resource wars in the mistaken belief that more oil will solve the problem and a general collapse of oil-dependent societies may occur, in the foreseeable future.

The entire oil production and consumption balance does not have to break down completely, either. A gap of as little as 5 to 10 percent between the two can be enough to create wildly fluctuating prices and increased stress on the oil dependent society in countries through most of the free world. The expectation of increasingly common blackouts and power shortages beginning as early as 2008, are beginning to be publicly stated by those who have reason to know.

Right now, the oil consumption in the United States is the largest in the world, over 20 million barrels per day, over three times that of the second ranked nation�China.

Is it too late to do something about oil consumption? Perhaps, but actions during and following earlier shortages did have an impact�some of it permanent--on usage. For example, during the 1970's fuel crunch, people turned to more fuel efficient cars, auto manufacturers revamped their entire line to make vehicles with higher mpg ratings. People took an active role in making homes energy efficient, and technology focused on better utilization of energy resources. These improvements and savings didn't go away when the prices dropped again, and there is still more improvements and energy conscious decisions to be made.

Certainly an awareness of the problem is appropriate and any individual actions which are taken in the area of reducing oil consumption cannot hurt.