Global oil consumption at all-time highs: Can the world handle an economic boom?
Worldwide oil demand too high to ignite an economic boom?
Is $100 oil a world economy killer?
In 2010, the world used more oil per day than ever. According to the Worldwatch Institute, the world averaged 87.4 million barrels of oil consumption per day, with China leading the way higher, followed by the US, Brazil, Russia, and the Middle East.
Interestingly, however, proven oil reserves have been increasing since 1980, notes the same study, and stand at 1,526 billion barrels as of 2010, although unconventional sources, such as oil sands, are starting to become a bigger share of the recoverable mix.
Today, for instance, almost half of all Canadian oil is now derived from tar sands, but numerous environmental concerns remain looming issues.
Blah, blah, blah. What does this mean for oil prices?
Growing Chinese demand alone will continue to push global oil consumption to new highs for many years, especially once the world’s economy starts booming again, and that probably means higher oil and gasoline prices indefinitely.
Of course, one might argue that it’s these new highs in oil consumption that have helped push the world back towards recession. Ironically, as the economy starts heating up, the result could be economy-killing spikes in oil prices.
Source: GreenCarCongress
