Oil Supply....point/counterpoint

lowecur

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Pulitzer Prize winner said we will be awash in oil in a few years. Other article disputes this theory. Roll the dice, it's anybodys guess.:)






[size=+2]It's Not the End Of the Oil Age[/size]
Technology and Higher Prices Drive a Supply Buildup



[size=-1]By Daniel Yergin
Sunday, July 31, 2005; B07
[/size]

We're not running out of oil. Not yet.

"Shortage" is certainly in the air -- and in the price. Right now the oil market is tight, even tighter than it was on the eve of the 1973 oil crisis. In this high-risk market, "surprises" ranging from political instability to hurricanes could send oil prices spiking higher. Moreover, the specter of an energy shortage is not limited to oil. Natural gas supplies are not keeping pace with growing demand. Even supplies of coal, which generates about half of the country's electricity, are constrained at a time when our electric power system has been tested by an extraordinary heat wave.

But it is oil that gets most of the attention. Prices around $60 a barrel, driven by high demand growth, are fueling the fear of imminent shortage -- that the world is going to begin running out of oil in five or 10 years. This shortage, it is argued, will be amplified by the substantial and growing demand from two giants: China and India.

Yet this fear is not borne out by the fundamentals of supply. Our new, field-by-field analysis of production capacity, led by my colleagues Peter Jackson and Robert Esser, is quite at odds with the current view and leads to a strikingly different conclusion: There will be a large, unprecedented buildup of oil supply in the next few years. Between 2004 and 2010, capacity to produce oil (not actual production) could grow by 16 million barrels a day -- from 85 million barrels per day to 101 million barrels a day -- a 20 percent increase. Such growth over the next few years would relieve the current pressure on supply and demand.

Where will this growth come from? It is pretty evenly divided between non-OPEC and OPEC. The largest non-OPEC growth is projected for Canada, Kazakhstan, Brazil, Azerbaijan, Angola and Russia. In the OPEC countries, significant growth is expected to occur in Saudi Arabia, Nigeria, Algeria and Libya, among others. Our estimate for growth in Iraq is quite modest -- only 1 million barrels a day -- reflecting the high degree of uncertainty there. In the forecast, the United States remains almost level, with development in the deep-water areas of the Gulf of Mexico compensating for declines elsewhere.

While questions can be raised about specific countries, this forecast is not speculative. It is based on what is already unfolding. The oil industry is governed by a "law of long lead times." Much of the new capacity that will become available between now and 2010 is under development. Many of the projects that embody this new capacity were approved in the 2001-03 period, based on price expectations much lower than current prices.

There are risks to any forecast. In this case, the risks are not the "below ground" ones of geology or lack of resources. Rather, they are "above ground" -- political instability, outright conflict, terrorism or slowdowns in decision making on the part of governments in oil-producing countries. Yet, even with the scaling back of the forecast, it would still constitute a big increase in output.

This is not the first time that the world has "run out of oil." It's more like the fifth. Cycles of shortage and surplus characterize the entire history of the oil industry. A similar fear of shortage after World War I was one of the main drivers for cobbling together the three easternmost provinces of the defunct Ottoman Turkish Empire to create Iraq. In more recent times, the "permanent oil shortage" of the 1970s gave way to the glut and price collapse of the 1980s.

But this time, it is said, is "different." A common pattern in the shortage periods is to underestimate the impact of technology. And, once again, technology is key. "Proven reserves" are not necessarily a good guide to the future. The current Securities and Exchange Commission disclosure rules, which define "reserves" for investors, are based on 30-year-old technology and offer an incomplete picture of future potential. As skills improve, output from many producing regions will be much greater than anticipated. The share of "unconventional oil" -- Canadian oil sands, ultra-deep-water developments, "natural gas liquids" -- will rise from 10 percent of total capacity in 1990 to 30 percent by 2010. The "unconventional" will cease being frontier and will instead become "conventional." Over the next few years, new facilities will be transforming what are inaccessible natural gas reserves in different parts of the world into a quality, diesel-like fuel.

The growing supply of energy should not lead us to underestimate the longer-term challenge of providing energy for a growing world economy. At this point, even with greater efficiency, it looks as though the world could be using 50 percent more oil 25 years from now. That is a very big challenge. But at least for the next several years, the growing production capacity will take the air out of the fear of imminent shortage. And that in turn will provide us the breathing space to address the investment needs and the full panoply of technologies and approaches -- from development to conservation -- that will be required to fuel a growing world economy, ensure energy security and meet the needs of what is becoming the global middle class.

The writer is chairman of Cambridge Energy Research Associates. His book "The Prize: the Epic Quest for Oil, Money and Power" received the Pulitzer Prize.



http://321energy.com/editorials/cooke/cooke080105.html
 
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islandhopper

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wouldnt that be swell.
 

jetflyer

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Lowecur,

Read this also from 321energy:
http://321energy.com/editorials/sprott/sprott070505.html

It says the increases will not be able to overcome the DECLINES in current fields and that the world may well be producing it's MAXIMUM ever now(PEAK OIL).

It goes on to talk about the declines from MEXICO, the North Sea, Australia, and even RUSSIA.

It goes on to talk about how scary it would be if one oil field in particular went into decline: GHAWAR, the KING oil field of the world, which has been pumping for 50+ years and alone produces about 6% of the world's oil and about 60% of Saudi Arabia's oil. It has only maintained it's output by very advanced recovery techniques. Similar Giant oilfields in the past using the same techniques(North Sea, etc.) have had dramatic declines of 10%+ which would be scary for the world.

Read this article too.

There will be a lot of extra oil coming on the market in the next 4-5 years, but many experts predict the declines will OVERCOME these increases around 2008. Even if they don't we can't just HOPE the new supplies are enough. Eventually they won't be. We need to now begin the conservation and increase production of alternatives before it's too late.

CHEVRON from their http://www.willyoujoinus.com/issues/alternatives/ site which looks for a way to move past oil says 33 of the 48 MAJOR OIL PRODUCING COUNTRIES HAVE REACHED THEIR PEAK OIL. This is serious. They are in decline, and it takes a lot of increased production for the other 15 major oil producing countries to overcome this decline.

Jet
 
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General Lee

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Jet,


What about that new $1 billion drilling platform that was just built but was slightly hurt during that hurricane a couple weeks ago? That and Anwar could fill the gap. Also, didn't Libya just come back into the oil picture? After paying off the Pan Am families, I thought they were allowed to sell oil again. And, if Iraq ever gets back up to normal, that too will help. Also, any major price increases will probably slow down other economies, and that will yeild more gas for the rest of us.


Bye Bye--General Lee
 
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jetflyer

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PART ONE
General Lee,
The Thunderhorse Platform in the gulf you're talking about is only going to provide .25 million barrels per day after years of increased production. Global oil demand increases 1.5-2 million barrels a day now. Drilling in ANWAR, unfortunately wasn't passed in the Energy Policy, but when it passes soon, it will take 10 years to provide 1 million barrels per day.

Lowecur offered the link below, but did not cut and paste it. It talks about how CERA's optimistic views have a ton of wild assumptions. BELOW IS THE BOTTOM of the article linked below. I suggest you all read the article linked.

From Lowecur's linked site from the bottom of his first post, which he didn't cut and paste:
http://321energy.com/editorials/cooke/cooke080105.html


REALITY CHECK
CERA's optimistic views are in the minority.

John S. Herold, Inc.

Wall Street firm John S. Herold Inc. of Norwalk, CT http://www.herold.com/ has estimated peak production for about two dozen oil companies. Without substantial new investment and additional discoveries, the company believes that French oil company, Total S.A., will reach peak production in 2007. Exxon Mobil, ConocoPhillips, BP, Royal Dutch/Shell Group, and the Italian producer, Eni S.p.A. will hit peak production in 2008. In 2009, Herold expects ChevronTexaco Corp. to peak. In Herold's view, each of the world's seven largest publicly traded oil companies will begin seeing production declines within the next 48 months or so.

PFC Energy

From the July 1, 2005 edition of the Washington Post comes this commentary by Robin West, in an article entitled "Crude Courage"

"J. Robinson West, chairman of the consulting group PFC Energy, has floated with administration officials his idea of a sustained national dialogue on energy that includes all stakeholders. And his group has gathered what may be the best statistics available on the seriousness of the supply-demand crunch.

West argues that the oil market squeeze will only get worse -- and more vulnerable to political disruptions. By his estimate, about 77 percent of proven oil reserves are controlled by nationalized oil companies rather than by the international majors such as Exxon Mobil. Meanwhile, non-OPEC sources of supply are slowly declining. …. Even if more crude were suddenly discovered, there's a worldwide refining squeeze, with almost no spare capacity left.

The day of reckoning is less than 15 years away, by West's calculation. Assuming fairly slow growth in demand of about 1.8 percent annually, he reckons that by 2020 demand will total over 100 million barrels per day, and OPEC will be unable to fill the supply gap. Unless the United States and other consuming countries have taken steps to reduce consumption, the supply-demand imbalance will throw the world into economic chaos ….. "

ChevronTexaco

Dave O'Reilly, the chairman of ChevronTexaco: “The time when we could count on cheap oil and even cheaper natural gas is clearly ending.” Chevron has started a petroleum resource discussion on the WEB at http://www.willyoujoinus.com/. Vice President of Policy, Government and Public Affairs, Patricia Yarrington believes the site is an important first step in a new dialogue. "We developed a campaign that is rooted in the real issues facing our industry. They are issues that affect everyone who has a stake in energy – consumers, businesses, policymakers, environmentalists, educators and political leaders. We think it’s a very compelling campaign about a very compelling subject."

ExxonMobile

ExxonMobile projects non-OPEC Crude and Condensate production will plateau before 2015 in its Energy Outlook presentation. ExxonMobil proposes that increased demand be met in two ways. The first is greater fuel efficiency. (How often do you hear oil companies pleading with us to buy cars that use less gas?). The second way is for OPEC to vastly increase production.

We should pay attention to ExxonMobile's judgment. "This assessment (of increased OPEC production) is somewhat ominous"writes Dr. Colin Campbell, a founder of ASPO, "… such production increases are only possible from Iraq, Saudi Arabia, Kuwait, and the United Arab Emirates.For these countries, and indeed for most OPEC members, petroleum and petroleum products are their only significant export. As such, they have a vested interest in obtaining the best possible price for their non-renewable resources. OPEC nations would be quite unlikely to increase production as rapidly as needed unless compelled to do so." And in the ASPO Newsletter 55 (July 2005), Dr. Campbell writes "It is significant that the first quarter production of most of the major oil companies is falling : ExxonMobil -3%; Chevron -6% ; Shell -8% ; Repsol YPF -7%., while Phillips-Conoco maintained its level with BP at least reporting a 2% increase (see Petroleum Review, June 2005). All the more reason that the public should heed the silent alarm sounded by the ExxonMobil report, which is more credible than other predictions for several reasons.First and foremost is that the source is ExxonMobil. No oil company, much less one with so much managerial, scientific, and engineering talent, has ever discussed peak oil production before. Given the profound implications of this forecast, it must have been published only after a thorough review."

Shell

The Royal Dutch/Shell Group of Companies, in their presentation "Visions of the Future: Shell launches new Global Scenarios looking forward to 2025" lays out the risks: " The energy scene will be reshaped by the combination of three discontinuities: a relinking of energy consumption and economic growth as a result of the faster development of emerging countries, the emergence of carbon as a commodity in its own right, and the search for energy security. The latter will remain a key consideration during the scenario time span, potentially leading to far more politicized energy relations and creating new sources of tensions among countries as well as new opportunities for entrepreneurship and cooperation. Ambiguity will persist as to what the term “energy security” covers: physical supplies can be threatened by rising international insecurity as well as by depletion of supply sources. Insecurity can also result from the lack of investment in enhanced recovery of existing sources, in new energy sources and/in infrastructures."



SEE PART TWO



 
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jetflyer

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Aramco

Although Aramco, Saudi Arabia's national oil company (and the largest oil company in the world), has launched a massive expansion program, it could be 5 to 7 years before we see any meaningful increase in production from this additional investment. Worse, Saudi officials have apparently told the Bush Administration that OPEC will be unable to meet projected oil demand in 10 to 15 years. Saudi Arabia would have to produce up to one half of the increased demand, with most of the remainder coming from Kuwait, the United Arab Emirates, and Iraq. In order for the CERA scenario to work, the cartel would have to boost its production to 50 Mbl/d
(I'm adding: This is 5X the current 9.5mbl/d!! Matthew Simmons says they're close to decline now).
Few believe that will happen.
Saudi Arabia, for example, has apparently calculated that its contribution will fall short by up to 5 Mbl/d by 2024.

BP

Only BP appears to agree with CERA. There "is no shortage of oil and gas resources for the long term" (From "Making the right choices, The energy year in perspective"). The world has enough proved reserves of oil to last 40 years "at current consumption levels". Higher prices, BP claims, have been caused by a supply-demand imbalance that should be resolved with the addition of new production over the next few years. Incidentally, BP is the only major independent oil company that had more reserves at the end of 2004 than it had at the beginning of that year.

Conclusion
Delayed projects and disruptions in the oil supply chain, coupled with current rates of depletion, could lead to temporary shortages long before "Peak Oil".

Why? Because the issue is NOT how much oil do we have left in the ground. The issue is – How much oil can we produce? Sure. Calculating available reserves (proven, probable, and possible) is important because these projections give us a rough idea when peak oil production will occur. But when we talk about oil as a business, we have to include the challenges of exploration, production and transportation. It will be tough, for example, to find and pump this stuff from black holes in remote Siberia or the cold blue ice of the Artic. Emerging technologies may permit us to drill 10,000 meters below the surface of the ocean, but it's still an incredible operations headache. Producing oil from shale and sand is possible, but finding enough water and natural gas to sustain production will be difficult. And then there's another problem. Most of the world's remaining reserves and transport routes are located within the boundaries of nations that are politically unstable, have unpredictable regimes, may ignore their contractual obligations, or have a large faction of politically active extremists.



Given the seemingly infinite number of imponderable variables and assumptions, a credible forecast based on available information (facts) is impossible. That's why I developed a series of scenarios for my book - Oil, Jihad and Destiny. Each scenario provides a way to organize a set of related facts and assumptions. Because they begin as a hypothesis, scenarios can be tested against known data points. We can also estimate each scenario's probability. Although the resulting "Best Case" scenario in my model projects adequate oil production through 2020, I gave it a probability of only 40 percent. The "Production Crisis" in my book describes a more likely scenario. Oil shortages will drive intermittent periods of recessive economic activity. Recession drives down demand. Oil surpluses appear and prices decline. A sluggish economic recovery occurs until oil production again falls behind demand. Consumption then decreases or is stagnant, and the cycle is repeated.



In the final analysis, however, the pivotal point for all of these assumptions and scenarios rests on the motivations, political realities, and production capabilities of the Middle East. If they are willing to act in the selfish-best-interest of the industrialized nations, then CERA's "Best Case" scenario is possible.

If not, we are in for a long period of cultural and economic agony.

Ronald R. Cooke







PLEASE READ the whole article from the above link. Of course read CERA's optimistic views, but then read the countless other information available that unfortunately discredits their optimism. If Saudi Oil Production ever reaches 12 mb/d it will be a miracle. Read "Twilight in the Desert" from an advisor to the Bush Administration. He analyzed hundreds of recent SPE Papers from Saudi Aramco and summarizes the major difficulties, they're having. They use the MOST advanced recovery techniques known to man, to just maintain the production they have now. Also when they increase production all they have left is the HEAVY SOUR CRUDE. ALMOST ALL OUR REFINERIES CAN'T use the stuff. We need the Light Sweet Crude. We need to build the new refineries to handle the HEAVY SOUR! Let's hope we can build them on the old military bases.



Jet
 
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jetflyer

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New Oil Projects Cannot Meet World Needs This Decade

Just found this INTERESTING article about supply problems from:
http://www.globalpublicmedia.com/articles/196

NEW OIL PROJECTS CANNOT MEET WORLD NEEDS THIS DECADE
World oil supplies are all but certain to remain tight through the rest of this decade, unless there is a precipitous drop in demand, according to the results of a study by the London-based Oil Depletion Analysis Centre (ODAC).

The study found that all of the major new oil-recovery projects scheduled to come on stream over the next six years are unlikely to boost supplies enough to meet the world’s growing needs.

ODAC analysed a total of 68 ‘mega projects’ with publicly announced start-up dates from 2004 through 2010. In total, these projects would add around 12.5 million barrels a day to world oil supplies by the turn of the decade.

This new production would almost certainly not be sufficient to offset diminishing supplies from existing sources and still meet growing global demand,” ODAC Board member Chris Skrebowski said.

More than half of the estimated new supply would simply replace production declines elsewhere due to natural depletion, the study found. A modest one percent annual rise in demand over the six-year period would then leave little or no surplus capacity to cushion against unforeseen disruptions in supply.

If demand were to increase by two percent annually, available supplies could fall short of the total needed in 2010 by more than two million barrels a day – roughly equivalent to losing all of Kuwait’s current daily production.

“With most producers operating flat out to meet runaway demand increases this year, the world’s immediately available spare production capacity has virtually disappeared,” Mr Skrebowski said. “This means that significant additional supplies in the near-to-medium term must come from new projects already in the development pipeline.”

“We now see those projects providing surprisingly limited relief in terms of incremental supply in coming years, and indeed physical shortages appear ever more likely if demand remains strong,” he said.

Even with relatively low demand growth, our study indicates a seemingly unbridgeable supply-demand gap opening up after 2007,” he said.

Mr Skrebowski, who is editor of the UK trade magazine Petroleum Review, compiles and regularly updates the details of planned major oil-development projects, as reported by the oil companies. The list contains all announced projects with at least 500 million barrels of estimated reserves and the claimed potential to produce 100,000 barrels a day or greater.

Using that list, ODAC examined three demand-growth scenarios of one, two and three percent a year to illustrate the likely range of outcomes. It also assumed that the combined annual rate of production losses from those countries where output is now permanently declining would remain constant each year, despite evidence that it appears to be accelerating and the likelihood that more producers may go into decline soon.

The effect of depletion in mature oil-producing regions is now becoming a much more significant factor in the supply-demand equation,” Mr Skrebowski noted.

According to data from the latest BP Statistical Review of World Energy, 18 major oil-producing countries are now past their peak production, and their combined annual output dropped by over a million barrels a day in 2003. This group of countries now accounts for almost 29 percent of total world production.

The ODAC study did not attempt to forecast when other countries would peak and tip into decline, but experts agree that several more are likely to do so within the next few years. Mexico and China, the world’s fifth- and sixth-largest producers respectively, appear to be among the likely candidates.

Mexico’s national oil company, Pemex, has already announced that production from Cantarell, the world’s largest offshore oil field, is expected to peak in 2006 and then decline by 14 percent a year. China, too, has confirmed that its two largest producing regions are now in decline. It achieved only modest overall production growth last year of 1.5 percent.

Of the 68 confirmed projects that ODAC analysed, 56 are due to come on stream in the next three years. Seven are scheduled to start pumping oil in 2008, three in 2009 and just two in 2010. Since it takes, on average, six years from first discovery for a major project to start producing oil, any other new projects approved now would be unlikely to add further supplies until after 2010.

It is disturbing to see such a dramatic fall-off of new project commitments after 2007, and not more than a handful of tentative projects into the next decade,” Mr Skrebowski said.

This could very well be a signal that world oil production is rapidly approaching its peak, as a growing number of analysts now forecast, especially in view of the diminishing prospects for major new oil discoveries,” he said.

Industry consultants IHS Energy recently reported that 85 percent of all the oil ever discovered is now in production, and only half the total produced last year was replaced by new field discoveries. Annual consumption has now exceeded new discoveries every year since the early 1980s. Overall, worldwide oil discoveries have been declining steadily for the past 40 years.
Not good. Let's begin getting away from oil now!
Jet
 
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miles otoole

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Why are you in this industry if you believe in the significant drop in the supply of oil???
 

spacecadet1

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As has been mentioned in other threads, turbine engines can be modified to run on Hydrogen. There are of course the problems associated with developing a practical storage technology on aircraft. I also don't know what the numbers are for energy extracted per lb. of fuel for H2 versus jet A. Additionally, the hydrogen has to come from some energy source: solar, nuclear, etc. But I think the point is that there are alternatives that will be developed. Commercial aviation will adapt.
 

Whale Rider

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Guys there is plenty of oil for us to fly on in our lifetime. When it does run out...and I do stress WHEN.......theres nothing we can do about it anyway. What the powers to be should be doing is making every effort to get us off of petroleum ASAP. This debate has been going on since the 1970's and it won't be any different in the 2070's.
 

miles otoole

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Jesus Jetflyer, I just wasted 20 minutes of my life.

Do you belong to the church of scientology as well?

Move on, young man.
 

mother fokker

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miles otoole said:
Jesus Jetflyer, I just wasted 20 minutes of my life.

Do you belong to the church of scientology as well?

Move on, young man. Obedience to lawful authority is the foundation of manly character." Robert E. Lee
Do you usually cruise aviation boards looking for "obedient manly characters"?
 
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jetflyer

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Whale Rider said:
Guys there is plenty of oil for us to fly on in our lifetime. When it does run out...and I do stress WHEN.......theres nothing we can do about it anyway.
Oil will NEVER run out on the planet. NEVER.

WORLD OIL SUPPLY, like has happened in 33 of the 48 major oil producing countries, will decline by about 3-5% per year after the NEW SUPPLIES DO NOT OVERCOME THE GROWING DECLINES.

At first the decline will be very subtle. Then over time the decline will go from .5% to 3+%

The North Sea has been declining at 17% per year.

Australia's oil production has been declining overall by about 15%.

The U.S. has declined EVERY YEAR since 1970 and has averaged a 2% decline. The U.S. production even declined after the Alaska North Slope was brought online and the Gulf of Mexico drilling. Oil production declined this last year as well, even after the largest increase in oil wells ever. The U.S. at it's maximum in 1970 pumped around 10mb/d. We now produce about 5mb/d. We use 20.5 mb/d.

The Mexican Oil company that controls the CANTARELL oil field(largest offshore field) in the Gulf of Mexico expects within the next year that it will decline by 10-15% per year. The owners of the field said that, not an outside group.

The more advanced techniques that are used, such as horizontal well techniques, carbon or water injection, etc. the faster the depletion is of the field after max production is achieved.

The decline of oil wells is a natural event. We should have seen this coming from a million miles away, and already had alternatives on the market. But those that stood to make money from current car, tire, and oil controlled the U.S. transportation market and have lobbied heavily against all other forms of transportation except the American automobile. Hmmm, didn't Bush just cut subsidies to Amtrack???

Bush's plan to get us out of this mess, is a good one, but will it be enough?? The energy policy was being pushed in 2001, until 9/11. Then Iraq became a major priority to control a large amount of oil and have a base in the Middle East, where the oil is. The energy policy is back which will provide much needed Nuclear Power plants. We will also begin coal gassification in the future, and to produce oil from the shale in the U.S. The Canadian oilsands are much needed as well. Eventually we'll drill in ANWAR, but this much needed 1mb/d won't be available for 7-10 years.

The current decline from DECLINING countries and eventual decline from the others, is VERY HARD TO OVERCOME. Experts predict even with the above measures, OIL WILL REACH PEAK by 2007-2008, even if you account for all the MAJOR NEW PROJECTS in the works and ENHANCED RECOVERY TECHNIQUES to get the EXPENSIVE OIL. The declines are just too large from the 33 countries in decline.

OIL PRICES will probably go close to $70.00 this year, and then next year will probably go down to around the low $50.00s for a while, because there is supposed to be a significant increase in supply by this time next year from CURRENT MEGAPROJECTS like the Thunderhorse Platform in the Gulf. Let's hope these megaprojects produce as desired. Next fall and beyond is going to depend on how fast hybrids and alternatives like biofuels can be ramped up, because the supply of oil is going to start having problems increasing.

Bush is pushing the Hydrogen economy to keep the power in the transportation industry the same. Exxon will now just produce, transport, and deliver hydrogen to the masses. The hydrogen economy is a joke and will not be technologically ready and cost effective till about 10-20 years.<--From experts in the field.

Electric cars, and Electric-Hybrids are a much better idea. Nobody is making them yet, but there is PLUG-IN ELECTRIC Hybrid technology that will give people the option to plug in their car at night. Then the car will be able to run 30 miles on just the batteries of the Hybrid. If extra power is needed during this time, the gas engine will kick in. There are companies now that will do this modification on the current hybrids. They input larger batteries and other neccessary components. Over time the batteries will get stronger and maybe allow 200 miles etc. but this is a threat to the current ENERGY POWERS, so there will be a lot of pressure against this technology.

Thermal Depolymerization plants, which can turn any carbon based waste like waste turkey parts from Butterball, etc., can make oil. They accelerate the process that naturally occurs in the ground from heat and pressure. This technology was just given tax incentives in the Energy Policy. These plants are going to be developed everywhere. The bad thing is they only produce hundreds of barrels a day, not the millions we need. They will help though.

Biofuels by 2030 according to Bush himself, can be ramped up to provide 20% of America's needs at that time. There needs to be more research on which biofuels are the most effective. Several studies have said they are energy DRAINS and use more energy than they provide. THIS WOULD NOT BE A GOOD THING. Ethanol, soy beans, palm, algae, switch-grass? and many other crops can be made into fuels. Ethanol from corn and soy beans have been said to be close to energy drains, but these two crops have POWERFUL LOBBY groups, that will push them even if they are inneffective. Other crops would be much better than ethanol and soy beans, but do those crops have powerful lobby groups in the government?

We need to stop letting Political Lobbying groups run America. We need to do what is effective and produces results, not what the powers want so they can make MONEY. Let's hope we do before we're forced to.

Jet
 
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jetflyer

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I found some interesting commentary about where the U.S. gets its supply of oil from. What might come as a total surprise to many is that CANADA of all places is where we get most of our imports from! Equally as shocking might be that MEXICO is number 2, Venezuela number 3, then finally Saudi Arabia at number 4.

So if we take over Saudi Arabia next we'll have a lot more oil for a while:), since they produce a total of 9 mbd and we only get 1.5mbd from them. Well that is in theory only, cause we've seen what's happened in Iraq. They are down over 1 million barrels/day since our invasion :(

The entire post can be found on the OILDRUM blog at:
http://theoildrum.blogspot.com/2005/08/crystal-ball-though-murky-is-not-empty.html

It is useful to review where we get our oil from. We did it here and here in more detail, but it can be simplified to figures from the OGJ(Oil and Gas Journal) that show that, in April 2005, the US imported oil from Algeria (0.467 mbd); Kuwait (0.164 mbd); Nigeria (1.243 mbd); Saudi Arabia (1.494 mbd); Venezuela (1.567 mbd); Other OPEC (0.597 mbd); Angola (0.365 mbd); Canada (2.190 mbd); Mexico (1.632 mbd); Norway (0.250 mbd); UK (0.394 mbd); Virgin Islands (0.358 mbd) and other non-OPEC (2.655 mbd) [1 mbd = 1,000,000 barrels a day].

Of these Mexico has just gone into depletion, Venezuela for political or geological reasons has dropped a possible 1 mbd of production over the past year, Saudi Arabia may or may not be at peak production, but has set aside 800,000 bd of new production just to offset depletion in its older fields, Canada is relying on tar sands for increases and at no more than around 150,000 bd/year; the North Sea appears now to be depleting at around 500,000 bd/yr (UK and Norway); Iraq is still dropping in production – at present it is down around 100,000 bd over last year (that may be the other OPEC); Angola is just starting to increase production as is Algeria; Kuwait is up around 20,000 bd; and Nigeria is staying stable, but appears to have significant political problems.
Let's hope Saudi Arabia (which Matthew Simmons says is near Peak) as well as IRAQ, Canada, Angola, Algeria, and Kuwait can increase production significantly to overcome the declines from the others and pump enough to account for the U.S.'s 2% per year DEMAND increase.

I have no doubt they will be able to for atleast 2 years. ASPO says after 2008 the World oil will have peaked, so the U.S. may not be affected as far as SUPPLY goes if we can still get the same or increasing amounts of oil from our major importers. We may have to PERSUADE them with force to keep the supply coming to us at the expense of other countries, but I do think that will happen:)

Many developing countries are struggling HARD from the high oil prices now and are experiencing an ENERGY CRISIS where people are rioting and are mad at their governments. So oil usage is going down in these countries because they can't afford the black gold. So this frees up oil for us dirty, rich Americans:) It will take $5.00+/gallon for us to be significantly affected. Before then other countries will have already been significantly more affected.

I recommend that you guys interested in the SUPPLY of oil, Peak Oil, Oil Demand, the Politics and Economics of OIL, etc. read the 2-3 daily posts on:
http://theoildrum.blogspot.com/


Jet
 
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jetflyer

Concerned Citizen
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EVERYONE interested in the SUPPLY OF OIL, should listen to MATTHEW SIMMONS talk on JIM PUPLAVA's FINANCIAL SENSE NEWSHOUR on August 6th.


Matthew Simmons was an advisor to the Bush Administration on the Energy Policy. He's a REPUBLICAN, not a left wing wacko.

LISTEN to the program at the site below. His interview was on the SECOND HOUR. Below I've added the links to the audio formats.


http://www.netcastdaily.com/fsnewshour.htm


Select an Audio Format below to listen to Matthew Simmons about OIL SUPPLY Problems:[font=Arial,Helvetica,Verdana]
RealPlayer l WinAmp l Windows Media l mp3

Jet
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Singlecoil

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This all reminds me of those TV commercials you periodically see that are trying to sell you gold and other precious metals. They usually go something like, "Gold offers the best hedge against inflation, is poised for a rally....etc". Who is paying for this commercial? Someone who wants to get rid of the gold they own!
 
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