Oil & Gas

According to the BP Statistical Energy Survey, the world had proved oil reserves of 1,476.4 billion barrels of which 143.1 billion barrels are in the form of oil sands. OPEC members hold around 75% of world crude oil reserves. The countries with the largest oil reserves are, in order, Saudi Arabia, Iran, Iraq, Kuwait, United Arab Emirates (UAE), Venezuela, Russia, Libya, Kazakhstan and Nigeria.

Although the world also has 3,600 billion barrels of unconventional oil reserves, these require significant energy and water to extract. Wood Mackenzie estimated the world's unconventional oil reserves as comprising heavy oil (107 billion barrels), extra heavy oil (457) and shale oil (2,800). The main sources are Canada, Venezuela, Madagascar and Texas.

Virtually all the 300 major oil fields of the world are watering out meaning they can no longer provide increasing consumer demand from countries like China, Indonesia, the United States and other countries. We consume 80 million barrels of oil per day and we will need between 100 and 115 million barrels of oil per day by 2015 if not sooner. There is no way the world's nations can meet rising demand. Therefore prices will have to raise substantially meaning wealth for those who own oil in the ground.

There are no known alternative energy sources that can compete with oil and natural gas due to the energy output of a hydrocarbon and the laws of thermodynamics with respect to fuel cells and hydrogen. Oil and natural gas will be the fuel of choice for the next fifty years even though every known alternative energy method will be needed. Based on analysis by experts all alternative systems could account for only 40% of our energy needs for the next fifty years.

All this means that Oil & Gas will remain an important strategic industry, and other sources of Energy are urgently needed.  Vision Finance recognizes the importance of both these areas.