Is that sensationalism or fact? It may not be completely accurate, but it is correct about one thing, fuel oils are being used at a faster rate than new found crude oil supplies. While the producers are searching for new supplies, oil fuel distributors are going literally to the ends of the earth to meet the demands.

UK's Reserves

The most recent figures, from the US Energy Information Administration, show that, as of January, 2009, the UK has oil reserves of approximately 3,500,000,000 gas oil barrels. Using consumption figures for fuel oils from 2007 of 1,763,000 barrels per day, we have about five and half years supply.

We are not self sustaining, since production for 2007 was running at 1,690,000 barrels. Unfortunately, the disparity between consumption and production will continue to grow and no new substantial discoveries are anticipated. As this trend continues, fuel oil suppliers will find it necessary to seek more of their fuel oils on the international market.

World Reserves

World reserves of crude oil are roughly 1,255,510 billion barrels with emphasis on the fact that this number is based, to some extent, on politically motivated estimates. Members of OPEC are thought to be guilty of inflating their reserves in an effort to increase their production. As usual, it is all about the money, which makes it very difficult to really know how much time we have left before we run out.

One clue to this problem is the fact that even though many of the OPEC countries have been producing billions of barrels of gas oil for years, with no new major discoveries, their reserve estimates have not changed or have actually increased.

New discoveries peaked in 1974 and production topped out around 2001. The world is now consuming four barrels of gas oil for every one discovered and that does not reflect the growth aspirations of China and India.

Supply

Refiners and oil fuel distributors are left wondering, as we all are, about the actual reserves. In the short term and in light of the weak economy, demand has lessened and the supply of fuel oils is sufficient.

Inevitably, and as certain as the coming cold weather, heating oil will feel the squeeze between supply and demand over the next few months. It might be a good idea to contact local fuel oil suppliers early to arrange the best possible price, before the inevitable happens.