23 June 2008

Oil exporting nations have been enjoying an economic boom in recent years thanks to the 6-fold increase in oil prices since 2002. This has resulted in an increased consumption of oil domestically by the producers themselves, which means less oil for export to oil-importing nations like Singapore. Look at the table below taken from theoildrum.com. 30 of the 44 net oil exporters in 2007 exported less oil than the year before even when demand was running high. If they exporters don't export, we importers don't get to consume. This does not bode well for us. Peak Oil is going to hit us faster and harder than what most people are expecting, and the worst thing is the Singapore government is oblivious to this matter. Our neighbour, Indonesia, is a net crude oil importer, which explains why they are not in the table.