KNOWN OIL RESERVES

________(2006) THE ECONOMIST/ 6/24/114

There are 22 countries that are recorded by this periodical to have oil. There is oil in other countries, but not enough to mention at this time. So where are we in terms of the big producers?

Most are in the middle east including Saudi Arabia, Iran, Iraq, Kuwait, and UAE. There are 2 other power houses of oil in Russia and Venezuela. That's it. The rest of the world is very small in proportion. The United States passed its peak in 1970. It is one of the largest oil consumers.

At today's extraction rate, there appears to be plenty of oil. However, that is misleading. Unless something very catastrophic happens, we will continue to consume with India and China joining the big consumers. The USA has doubled it's population from 1970 to date..The world population is around 6 to 7 billion which is twice that of the 1930's and 40's, so extraction rates should increase.

We still have time to modify oil so that there is more or replace it with another extraction or synthetic. Although oil prices vary it is more likely that the price of gasoline should continue upward more than downward in adjusted dollars.