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May 24, 2007

Comments

Ender

"OPEC producers are expected to provide more than one-half of the additional production in 2015 (8 million barrels per day)"

So OPEC has to, by 2015, find the equivalent of 2 Ghawars to produce 8 million barrels per day.

"Since 2000, the largest net increase in estimated proved oil reserves has been made in Canada, with the addition of 174 billion barrels of Canadian oil sands as a conventional reserve."

This is not oil - it needs natural gas and water and lots of it to be oil - how did it get included in conventional oil?

Does anyone else wonder where the oil is coming from?

marcus

yes

JohnBo

Their liquids projections are a combination from many sources e.g. coal. But, there are many petroleum reserves that have not been developed due to economics. Only of late have the Canadian oil sands become economic to produce. There are very large tar sands oil reserves in northern Alaska not yet tapped. There are many older reserves now shut in that can be reactivated if the oil price remains high or goes higher. It's all a matter of money.

There are very limited other energy sources that can compete with coal and oil. The best of locations for wind, geothermal, solar, etc. are marginal and but a drop in the energy needs bucket. I think mans best chance to make a dent in hydrocarbon energy use is low cost electric power generation provided by nuclear.

Lets face reality... even the greenest of the green guys i.e. Southern California is planning more coal usage. See Southern Cal Edison's new 600MW power plant. Economics drives the material world... and well it should else our standard of living would reverse rather than progress.

Of course the very best thing mankind could do would be to lower the earth's population. The green movement should support population control around the world. This is so obvious... why don't they do it? Perhaps a new international law to kill all boys born on odd days.. JUST KIDDING... :) JohnBo

eric

I guess I find these projections completely unrealistic. They are essentially projecting demand forward and assuming that supply will be there to meet it.

Promises about previously uneconomic resources becoming economic also seem unrealistic. The law of receding horizons will come into play, and the price will keep increasing, and the resources will continue to be uneconomic. Let me give an example - tar sands. The tar sands projects routinely have massive cost overruns, so the cost projections of the past are unrealistic. In addition, they use copious quantities of natural gas to warm the stuff up. Right now they use stranded natural gas - gas that is too far from a pipeline to get it to markets, and where it wouldn't be economic to build a pipeline. But they will use up all of that natural gas, and then some other technology will be needed. There is talk of building nuclear reactors to generate the heat to warm the stuff up, but this isn't a done deal.

The second point in this area is that the costs for producing these resources are paid for various things, but a large part of the costs are to in turn pay for energy, and as energy costs go up, then the production costs also go up. And when you reach the point where it takes a million BTU to produce a million BTU, you have effectively reached a point where it simply doesn't matter what the costs actually are - it is pretty much a guarantee that the project will never be economic.

averagejoe

"Of course the very best thing mankind could do would be to lower the earth's population. The green movement should support population control around the world. This is so obvious... why don't they do it?"

Good point. In the U.S., our population growth is largely driven by immigration. We should slash legal immigration quotas to under 100,000 per year for the next thirty years. Of course, it goes without saying that the U.S. should crack down on illegals and secure its borders... that's just basic common sense. The rest of the world likes to wag its finger at us for being energy hogs. Fair enough. Let's start fixing the problem by making sure we don't add to it. Let some other country be the world's new "lifeboat".

JohnBo

Eric you may be right that these projections are too great... however, having worked in the oil patch I can tell you there are lots of old oil fields that have been shut in because of excessive water production, etc. Also there are lots that have been discovered and not produced due to being difficult. One such field is just west of Anchorage.. it's big but fractured into several small pools. These dormant fields can be economic to produce when the price is right for handling the overhead. The government has all the data on these fields.

You know, no one has ever drilled at the south pole and only a tiny bit of the ocean has been sampled. It's like gold.. who knows how much there is?

I suppose the Canadian sands is a big gamble for the companies involved.. but the potential makes them try. It will all be interesting to watch. I sure hope the green energies can somehow begin to compete on a meaningful scale.

After reading this blog for a few months and other news it seems to me that nuclear is the only competing green technology of substance. JohnBo

Dan

These EIA estimates are purely a creation of a government bureaucracy for the consumption of the Congress and taxpayers - it is unlikely that the EIA would or could release any figures that would significantly challenge the vested interests of the buyers (the taxpayers.) In other words, these projections are not from peer-reviewed scientific analyses, but rather telling the public what it wants to hear.

Simply projecting forward numbers based on the past is a poor and misleading approach. A much better one would be a field by field analysis with a comprehensive look at every region of the globe, but unfortunately in many parts of the world data is kept secret.

Oh, and JohnBo, do you really think it would ever be reasonable to drill for oil at the south pole? The pole itself is covered with ever building and moving ice a couple of miles thick. Maybe on the Antarctic peninsula someday oil exploration may be possible, but forget inland Antarctica.

Someday all of these hearsay-based and wishful thinking futurists will have to come to terms with the limitations of FF production.

JohnBo

Hi Dan, thanks for the comments.

The good old boys have been drilling in shifting, sliding arctic ice for several years. Even drilling through ice over the Arctic Ocean. I don't think Antarctic ice will stop them. They are also drilling deeper in the oceans...etc. etc. So who knows how much they will find.

Yep FF are limited for sure... but there's a lot out there? Also, this EIA report includes coal, biofuels etc. in their liquids projections. And besides... how can you doubt a government report put together by bureaucrats? JohnBo :)

arina

mohon dipelajari

Melinda

This will not be difficult. Peak oil is more a concept than an actual happening. It requires a bit of flexibility to go with the flow as it were.

As a doomsday scenario, there are those far more convincing and compelling than peak oil. A person must be able to live with her beliefs, so I encourage you to prune them vigorously, to allow the sunshine in.

Chandranshu Pandya

I wonder whether we have been "educating" our school children on power conservation to the extent we should.The youngsters, once they understand and start taking action, can sane a lot of power consumption,I think.

Oil Additive

nice one i really like it..

Drilling Chemicals

It has a white or colorless vitreous crystal, with a crystal structure that cleaves easily in three directions. Potassium chloride crystals are face-centered cubic. Potassium chloride is occasionally known as "muriate of potash," particularly when used as a fertilizer.

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