Goody

1,238 Billion Barrels of Oil Reserves: Is This an Oil Price Bubble?

A couple of problems.
Part One...there is no external agency is allowed to see what OPEC countries really have in reserve and it probably like the late 70-80 numbers they are way over inflated.
Part Two.. the problem is not how much reserves are there but will they keep up with demand growth. Currently supply/production of oil has been flat since 2005 just like in the early 90's. This is of course in comparison not in nomial terms but with growth. World demand growth at this time has been around 5%.
Part Three. We will never run out of oil becasue there will be a point in which the energy or cost to extract it will vastly exceed its price or energy output. However we will reach a point where the sacrity come into view, insuch that the price of oil wil greatly increase. Notabily.. given the huge play that oil has in every country's economics there is nodoubt that world tensions will rise and i would say war would not be ruled out. Remember Japan? they attacked the US because the US cut off their oil supply....