Source: http://www.etftrends.com/2009/11/oil-etfs-supply-oil-cant-keep-up-with-demand.html
Summary
The global desire for oil is immeasurable while the supply of oil is lacking. With the overwhelming demand of oil, it is estimated that global oil demand will probably exceed supply in 2010. Approximately oil demand will rise by 1.3 million barrels per day (bpd) where in 2010 to 85.9million bpd. On the other hand, supply from outside the Organization of Petroleum Exporting Countries (OPEC) and production of natural gas liquids may only grow 800,000 bpd. If OPEC sustains its present proportion, there is a chance that crude oil will drop by 150 million barrels in 2010. Oil demand is expected to be highest from countries outside of OPEC, like China with its vast demand.
Connection
One of the most gas consuming machine are cars. Even with the technology advancements in electric powered automotives, the final decision is base on an individual’s taste and preferences whether or not to purchase vehicles which are electrical powered. Although the price of electric powered automobiles are expensive, and the cost to recharge the car would be similar to the price of a fill up at the gas station, with the average household income, the real question is will families be about to afford these vehicles. Using electrical powered cars as an excellent substitute instead of gasoline powered cars. This will help stabilize the supply and demand for oil because lesser people will have to purchase gasoline to power their cars. With the ever growing demand for oil, it is important we find alternate routes to power our utilities.
Reflection
We have to take into consideration that in the next few years there may be a possibility of oil being a scarce resource. Even now the price of oil has risen tremendously in the past few months. In my own experience, I think twice before driving somewhere and instead taking public transit. Although electric powered cars are similar to gasoline powered cars in many ways, where the main difference is one is powered by electricity and one is by gasoline, I believe the reduction of gasoline powered cars and the addition of electrical powered cars will be a brilliant way to help reduce the overwhelming demand of oil throughout the world. It is hard to believe that approximately the demand for oil rises 1.3million bpd and that number will just keep increasing regardless of the price of oil. In my opinion, I think it is reasonable that developing countries receive the privilege of being first in the distribution of oil. However, only in an ideal world would sympathy come before greed.
