Peak Oil Redux Part V

From 04/13/05 Oil Consumption Conundrum:

China, the world's #1 coal producer and consumer, still burns coal for 67% of its energy needs. China is the #2 oil consumer at 8% of world use. China imports 33% of its oil consumption needs. In other words, China imports just under 3% of the worlds oil and 33% of China's energy needs are met by 3% of the worlds oil production.

The U.S. is the #1 oil consumer at 25% of world use. More than 200 million light vehicles on U.S. highways, consume 11% of total world oil production, leaving the other 14% for U.S. industry. In other words, our automobiles use 3% more of the worlds oil than all of China.

Efficiency: Japan uses 130 grams of crude oil for every $1 of nominal gross domestic product, against 230 grams in the US and 800 grams for China.

A conundrum? China is credited with 40% of the worlds increase in oil consumption since 2000. How can this be, if China consumes 8% of the worlds oil and actually imports only 3% of the worlds oil to meet 33% of their needs? Perhaps some of the numbers being bandied about are misinformation. Time for another Morley.


From "The Last Word" MSNBC comments from acting OPEC secretary-general, Adnan Shihab-Eldin this week:

You've said that the latest oil-price hikes aren't driven by market "fundamentals." So what is driving them? 

SHIHAB-ELDIN: "Clearly the prices are driven by concerns over future supply interruptions, geopolitical tensions and natural disasters—which unfortunately have materialized. But we believe that the fundamentals are sufficiently strong to deal with that."

"At least for crude, supply has been running ahead of demand for the last two years. [But] output of the refined product has been close to the refineries' limit, and that has contributed to price rises. The industry has to do something about that. There is no point in increasing production unless you have the refining capacity."

But won't the soaring demand from the developing world—as well as a forecast decline in supplies—inevitably keep prices high?


"We won't have a problem in 10, 15 or 20 years' time because the resources are sufficient and the investment is already in place. We don't see any problem in meeting demand from the developing countries even if demand continues at a robust [annual] level of 5 percent. Obviously in 40 or 50 years' time there may be [a problem], but we will have plenty of time to work out alternatives."


Ok, more valid points on the supposed Chinese "monster" increase in demand and consumption canard. Much like Chinese GDP numbers and accounting books, suspicious numbers at best.


And more comments from OPEC regarding current supply-demand and more importantly, hinting towards sufficient resources and investment already in place to meet future demand, as well as "alternatives". Do they know something we dont? or are these just self serving comments to keep the status quo? Stay tuned, no flipping, more to come in Part VI.


$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary

Another Peak Oil Cufuffle Series 

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