The Forum > Article Comments > How unconventional oil changes the world > Comments
How unconventional oil changes the world : Comments
By James Stafford, published 14/12/2012Michael Levi from the Council on Foreign Relations thinks oil prices could drop much further, amongst other things.
- Pages:
-
- 1
- 2
- Page 3
- 4
- 5
- 6
- 7
-
- All
Ad hominem arguments don't really support your cause but I guess they might make you feel better.
Curmudgeon, the idea that a 'revolution' has occurred in the energy industry blinds you to seeing the underlying issues (but I guess it gives you a warm and fuzzy feeling that people such as Geoff and myself must upset). Your comment indicates that you still don't understand what the said chart says (perhaps Upton Sinclair's astute observation is relevant here: 'It is difficult to get a man to understand something, when his salary depends on his not understanding it')
Where does the vast majority of the worlds liquid fuels come from? Conventional crude oil (over 70mb/d). Tight oil, synthetic crude etc are only marginal sources (without looking it up about 4-5 mb/d) and NGPLs the production of which is growing reasonably strongly aren't in the main useful as a transportation fuel.
So the 4% decline rate from existing fields (you have not provided any evidence to suggest that this figure is not correct) implies that we lose around 3mb/d from decline each and every year which needs to be replaced. This is nothing new, the oil industry has been facing this issue for decades. It is highly unlikely, based on all of the predictions that I have read, from both "peak oilers" and non peak oilers that tar sands/tight oil etc are going to ever produce more than around 10 mb/d. Not an insignificant amount of course but not enough to make up for the 60mb/d or thereabouts required to sustain or grow current levels of oil production over the next 20 years