Michael T Klare: Scraping the bottom of the barrel

Asia Times: Data released each year at this time by the major oil companies on their prior-year performances rarely generates much interest outside the business world. With oil prices at an all-time high and Big Oil reporting record profits, however, this year has been exceptional. Many media outlets covered the announcement of mammoth profits garnered by ExxonMobil, the US's wealthiest public corporation, and other large firms. Exxon's fourth-quarter earnings, at US$8.42 billion, represented the highest quarterly income ever reported by a US firm.

"This is the most profitable company in the world," declared Nick Raich, research director of Zacks Investment Research in Chicago. But cheering as the recent announcements may have been for many on Wall Street, they also contained a less auspicious sign. Despite having spent billions of dollars on exploration, the major energy firms are reporting few new discoveries, and so have been digging ever deeper into existing reserves. If this trend continues - and there is every reason to assume it will - the world is headed for a severe and prolonged energy crunch in the not-too-distant future. Link

See Michael Klare 'Blood and Oil' lecture here [Realplayer]