The New York Times versus The Oil Drum = The Oil Drum Wins

NYT: It is normal for companies to discover billions of barrels of new oil every year, but this year’s pace is unusually brisk. New oil discoveries have totaled about 10 billion barrels in the first half of the year, according to IHS Cambridge Energy Research Associates. If discoveries continue at that pace through year-end, they are likely to reach the highest level since 2000.

TOD: Two times 10 billion barrels of oil is 20 billion barrels of oil. Twenty billion barrels of oil divided by 365 is only 54.8 million barrels a day--not nearly enough, if we are currently using 72 million barrels of crude oil a day. If 10 billion barrels is an unusually large amount in the first half, the likelihood of having equal success in the second half by luck is not very good.

SHOOT: Here you have a blog kicking the arse of the 'distinguished' New York Times. Have a look at the article and you will see TOD makes complete sense, and are able to take the flawed logic of NYT a step further [sssh...into a secret territory called...RE ALITY.]

clipped from www.theoildrum.com Because of the drop in demand for oil, oil prices drop again, allowing the economy to recover a bit, as it is doing now. But as the economy recovers, demand begins to grow again. With the rise in demand, oil prices are likely to rise again to a level where they have an adverse impact on the economy. The world economic system was damaged pretty badly with the last price spike. Another spike could have much more adverse results. Eventually, the world economy may become so damaged by oil price spikes that recovery of the world economy in the form we now know it may not be possible.