Petroleum Expert Tells It Like It Is

At the Gulf Coast Economics Club’s monthly meeting the audience was treated to some very sobering thoughts. This month’s speaker was Dudley Hughes, President of Hughes South Corporation of Jackson, Mississippi. Mr. Hughes is considered one of the world’s foremost authorities on Oil and Gas Exploration.

Mr. Hughes opened his talk by stating that the world was adding 16 million new automobiles to the existing number each year. A large number of these new additions are in China. The consumption of petroleum products is growing faster in Asia than anywhere else in the world.

One very interesting comment was that the world consumers are not running out of oil, HOWEVER we are running out of the production of oil products. The amount of new production capacity does not equal the current or future consumption forecast. This is the reason the price of gasoline in continuing to rise. Production capacity peaked in the 1980’s and demand for petroleum products continues to grow each day.

Mr. Hughes said that we do not need to worry about global warming, but we should be more concerned about the coming shortage of petroleum productions. He sees a worldwide crisis in the next 4 years.

When the meeting was over the entire audience came away with a much clearer understanding why the price of gasoline keeps going up. Mr. Hughes closed by saying that it is imperative that the next President of the United States understand the problems energy production in the world.

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