A lot has been said about the increases in supply in North America driving down the oil price over the last year. But the chart below from fivestates shows the demand side of the equation as we move forward. Interestingly the developed economies are expected to reduce demand as population growth slows and efficiencies increase. Hence it makes sense that North America can find a more self sufficient path going forward, while also hopefully continuing to find more sustainable energy paths.
Meanwhile, clearly the politics of oil will shift further east, correlating with the population and prosperity increase expected to be enjoyed.
Oil Fundamentals: Supply & Demand - Five States: "While supply continues to increase, the rate of growth in energy demand is slowing. Technology and conservation have slowed the rate of growth in energy consumption per unit of economic growth. Energy demand is highly correlated to economic growth. The Great Recession further curtailed energy demand growth.
But the industrialization of the emerging economies (primarily China and India) is more than offsetting conservation and efficiency in the industrialized economy. This trend is expected to continue for several more decades."
Meanwhile, clearly the politics of oil will shift further east, correlating with the population and prosperity increase expected to be enjoyed.
But the industrialization of the emerging economies (primarily China and India) is more than offsetting conservation and efficiency in the industrialized economy. This trend is expected to continue for several more decades."
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