The U.S. imports over 60% of it’s oil from foreign sources compared to 40% in 1985. Demand for oil and gas is rising worldwide at about 2.5 to 7% per year, while supply has declined annually. The world supply will be one million barrels short daily by 2006 pushing prices likely to $60-80.00 a barrel. 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.