This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

You Think Oil's Going Down? Think Again

Most of this developing world growth was happening in Asia, where the EIA estimates that oil consumption will grow by nearly 125% between 1995 and 2015. Anyone who has seen the streets of cities like Hanoi, Saigon, Bangkok, Phnom Penh, Shanghai and Delhi increasingly clogged with mopeds will tell you they wholeheartedly believe it.

There are reserves we could tap into, you say, but Heal points out they are only a drop in the gas tank.

The U.S. Geological Survey estimates that there are about 90 billion barrels in the controversial Alaska National Wildlife Refuge, and another 40 billion barrels or so have been found off of Brazil's coast. But global oil consumption is more than 30 billion barrels a year and growing (U.S. consumption is more than 7 billion).

"These are regarded as huge discoveries," says Heal. "But you're talking about four years worth of oil."

Additionally, he says there had been a deeply held belief among people such as himself that oil prices would top out at around $60 or $70 a barrel. The idea was that at this price it would become financially viable to turn coal into an oil equivalent or to extract oil from Canada's tar sands. So there would be new supply. But no one counted on global warming.

"Both of these processes create a lot of carbon dioxide," he notes. "No one wants to invest in them in a world where we're facing emissions caps."

All in all, "We always knew in principle that oil was exhaustible, but now it's beginning to look exhaustible," he concludes. "The more you use today, the less you have tomorrow."

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs