The official Saudi Press Agency (SPA) reported that King Abdullah has ordered a halt to new oil exploration to preserve the Kingdom’s vast hydrocarbon resources.

“I told them the Cabinet that I have ordered a halt to all oil explorations so part of this wealth is left for our sons and successors,” King Abdullah told Saudi scholars studying in Washington.  However, a senior oil ministry official told Zawya Dow Jones that the King’s words should not be interpreted as a full-fledged ban, but rather as a warning that future explorations should be carried out mindfully with an eye towards future generations.

Saudi Arabia possesses the world’s largest recoverable oil resources with 260.1 billion barrels at the end of 2009.  It is the largest member of the Organization of Petroleum Exporting Countries (OPEC) and recently announced the discovery of a new oil field and a non-associated gas field to add it its substantial holdings.  Saudi Arabia pumped an average of 8.26 million barrels a day in June 2010, about 209,000 barrels above its target.

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Data from the BP Statistical Review of World Energy shows global energy consumption fell by 1.1% last year, with oil and and natural gas usage down across the board.

Global coal use, however, has remained steady.  In fact, as a percentage of world primary energy usage, coal has risen to levels not seen since 1971.

On the other hand, oil’s percentage of global energy usage has fallen consistently over the past decade; from 39.00% in 1999 down to 34.77% in 2009.

As oil production becomes more difficult and expensive, coal is increasingly being employed as a source of transportation fuels.  Nations like South Africa and China have been expanding their coal-to-liquid (CTL) programs, and China reportedly has six major CTL projects under development.

CTL processes may present an alternative way to generate liquid fuel, but it comes at a price.  CTL produces nearly double the greenhouse gas emissions of conventional fuel production from oil, and many climate and environmental advocates worry that if CTL programs become more widespread the world would experience increased emissions levels.

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Global demand for oil is climbing as the economy gets back on track, however, upstream project cancellations and delays as a result of the recession last year may lead to a supply crunch in the near future.  Many believe it is only a matter of time before the next oil price spike, and believe a future barrel price of $150 is not out of the question.  If prices skyrocket once more, what industries will be affected most?

The following chart displays credit ratings agency Fitch’s picks for top winners and losers in a future era of expensive oil as seen in the FT blog “Energy Source”

Sir Richard Branson, founder of the Virgin Group, will say the coming crisis could be even more serious than the credit crunch

Sir Richard Branson and fellow leading businessmen will warn ministers this week that the world is running out of oil and faces an oil crunch within five years.

The founder of the Virgin group, whose rail, airline and travel companies are sensitive to energy prices, will say that the coming crisis could be even more serious than the credit crunch.

“The next five years will see us face another crunch – the oil crunch. This time, we do have the chance to prepare. The challenge is to use that time well,” Branson will say.

“Our message to government and businesses is clear: act,” he says in a foreword to a new report on the crisis. “Don’t let the oil crunch catch us out in the way that the credit crunch did.”

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