How Much Oil Do We Really Have?
As written on the BBC’s site: As oil prices remain volatile the markets do their best to forecast future prices. Unfortunately this is not an easy task. While it may appear extraordinary to outsiders one of the main problems in the oil market is the reliability of basic statistics.
The oil industry calls the problem ‘data transparency’.
As an example this week is a ‘revision’ to oil demand growth in the United States in 2004.
Previously the growth in oil demand was thought to be 2.4%, about 484,000 barrels per day. In fact it was 697,000 barrels per day or 3.5%.
That is in fact 46% more than was previously stated – a huge revision.
Source: BBC.
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