Oil Shortage Facts & Statistics

Global Demand

According to the Energy Information Administration (EIA), in 2009, global demand for oil was around 83 million barrels per day (mmb/day). The United States consumed about 18 mmb/day, all of Europe consumed about 15 mmb/day and China consumed about 8 mmb/day.

Predictions abound about how oil supply must increase to meet the demands of growing economies, however, according to the EIA, in 2009 there were 84 mmb/day of oil produced meeting consumption demands. The largest oil-producing region was the Middle East, producing 24 mmb/day. The next big producer was North America, contributing 15 mmb/day, of which the United States produced 9 mmb/day. Eurasia, including the counties that made up the former U.S.S.R., produced 12 mmb/day and Africa produced 10 mmb/day.

Global supply data are obfuscated by political biases and alliances. The EIA compiles data from companies and then extrapolates to determine regional contributions to global oil supply. Oil-producing nations and companies have an interest in distorting data about flow rates and discoveries because costs of production increase as oil supplies are more remote and difficult to extract. Price increases provide the cash flow necessary to enable the use of sophisticated technologies required to locate deposits. The best quality crude is the least expensive to produce. Oil sands, offshore deposits and reservoirs with decreased flow rates are more expensive to produce and require more refining. For instance, existing oil fields may require fluid injection to force oil into the well shaft, which contains more sulfur than oil produced earlier from that reservoir.

bridge traffic image by Aaron Kohr from Fotolia.com

Transportation uses 75 percent of all oil consumed in the United States.
Keep in mind, a global oil shortage does not mean an energy crisis. The transportation sector is in the most precarious position because of the combustion engine's dependence on oil. According to the Department of Energy, 75 percent of oil consumed in the United States is used for transportation. Predictions about increased oil demand from growing economies overlook the fact that most other sectors have more flexibility to transition to natural gas, coal, nuclear or renewable energy sources. Increasing transportation efficiencies will decrease oil demand, which may affect supplies.

Currently, global oil supply meets demand. Oil shortage can only be created when demand and prices fall, at which time, companies will not have enough cash for the capital expenditures required to locate, produce and refine remote, lesser quality oil deposits. Predictions that make economic growth dependent upon oil do not account for the transportation's sector over-reliance on oil. Economic growth can occur without inducing an oil shortage by increasing mobile efficiencies, relying on coal and natural gas and transitioning to nuclear and renewable energies.