Jim Landers of the Dallas Morning News wrote on Tuesday, July 17, 2007 that at the moment the nationalized oil producing countries are not spending the capital required to bring their oil reserves to market, thus for all intents and purposes their oil is staying in the ground.
Jim Landers writes from Washington that it is now up to the national foreign owned country oil companies of Petróleos de Mexicanos, Saudi Aramco, Petróleos de Venezuela, Russia's Gazprom and others of similar like to decide if they are going to make the capital investments necessary to increase production or whether they are satisfied with their current income and are happy to sit back and wait.
According to the literature, world demand for oil now stands at 86.1 million barrels a day. The U.S. Energy Information Administration expects it to reach 97.3 million barrels a day in seven years and 117.6 million barrels a day by 2030. That extra 31.5 million barrels of daily production is the equivalent of three
Based on what's known about the world's petroleum reserves, nearly all of the increase of oil’s barrels a day will have to come from countries that have national oil company monopolies.
Jim further reports that conservation, alternative fuels and giant new oil and natural gas fields in areas where Exxon Mobil Corporation and other private companies can explore won't be enough to meet the rising oil demands of a growing oil based global economy.
The Saudis are spending $50 billion to $70 billion to raise production in their country by a third, 331/3% increase, but that won't be enough.
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