Oil Supply Cannot Meet Global Demand

Americans sometimes act like other countries are sitting on their oil and they have a duty to provide it to as fast and cheaply as possible. But more and more countries are realizing their oil is a national treasure, and they're starting to sell as little of it as possible at the highest prices they can. It's called Resource Nationalism and it is bad news for American consumers. That's why, the elected president of Venezuela Hugo Chavez has been the subject of adulation and loathing both at home and abroad ever since. • In Venezuela, President Hugo Chavez' nationalization crusade has forced out two of the world's largest energy companies and the OPEC nation is preparing a decline in oil tax to boost its share of profits from its fields. • In Russia, Vladimir Putin has used hook and crook to bring more than half of that country's oil industry under state control, grabbing properties and projects from large foreign oil companies. • Even in the Middle East, Saudi Arabia, United Arab Emirates, Iran, Kuwait, Iraq and Qatar curbed their output by 544,000 barrels a day last year. At the same time, their domestic demand increased by 318,000 barrels a day, so, their next exports dropped by 862,000 barrels. In fact, net exports from Saudi Arabia, the world's biggest oil producer; have actually dropped by a total of nearly 1.2 million barrels since 2006. 'The reality is national oil companies' control 94% of the world's conventional oil and gas reserves. And they'll want more control in the years to come.