Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): One Shot, One Beer

Today, over 60% of the population in Africa use biomass such as firewood as their primary energy source, and a study done at Havard’s John F. Kennedy School of Government found that 90% of the rural Indian population still relied on biomass as the primary cooking fuel. As population in both of these regions grow and living conditions improve, oil demand will most definitely follow.

What a Fool Believes
According to The Economist, over 1 billion people have been taken out of extreme poverty over the past 20 years, and the UN’s Millennium Development Goals will look to remove another billion. Freedom from the shackles of gripping poverty will ultimately require more energy resources, though. We have made major strides in the developed world to replace some of our hydrocarbon use with alternatives, but global demand for oil will continue to rise as populations increase and living conditions improve.

At the same time, we shouldn’t fret too much about increasing demand. If we as a human civilization have proved anything over the course of human history, it’s that we have an immaculate ability to innovate and create new technology to harness energy for consumption. Personally, I look forward to seeing what we have up our sleeves to meet these impending challenges. Not only will human ingenuity and innovation ride to meet these lofty demands, but it will most certainly create several investment opportunities down the road.

The article Don’t Place Your Bets On Peak Oil Demand Just Yet originally appeared on Fool.com and is written by Tyler Crowe.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter: @TylerCroweFool.The Motley Fool recommends Chevron.

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