Posted on 02/28/2013 6:23:20 PM PST by neverdem
When the final figures for the fourth quarter of 2012 are in, the world will have a new crude oil production record: the total for the first three quarters was about 1 percent ahead of the 2011 total. This is a remarkable achievement for a commodity with annual output that now surpasses, for the first time ever, 4 billion metric tons and which has been, for decades, the largest source of fossil energy and the most valuable item of international commerce.
Global oil extraction was down in 2009 (2.5 percent lower than 2008 levels), but that had nothing to do with declining reserves and everything to do with weakened demand in the midst of the world’s worst postwar economic recession. That dip was brief; in 2010 global output was up by 2 percent and in 2011 it went up another 1.3 percent to surpass the 2008 record and come up less than 5 million metric tons (Mt) shy of the 4 billion metric ton mark. What is even more remarkable is how widely this rise has been shared: this becomes clear by looking at what happened to global output and to major oil powers’ oil production during the first decade of the 21st century.
These are the percentage increases for crude oil extraction between 2001 and 2011: global production was up by 10.8 percent, and Saudi Arabia’s output was 20 percent larger. So much for any imminent collapse of the country’s supergiant oilfields, a claim that made Matthew Simmons a temporary celebrity. Russia’s production was 47 percent higher, but that large rise reflects the recovery from a prolonged post-1991 extraction dip caused by the economic problems of post-Soviet Russia. Much more impressive gains were achieved by two former Soviet republics: Kazakh oil output doubled in the 10 year period, and Azeri oil production tripled!
The most remarkable story has been unfolding in the United States, where horizontal drilling and hydraulic fracturing have been rapidly adopted.
Total output in the Middle East in the decade after 2001 — despite continued politically induced underperformance of the oil industry in Iraq and production problems and trade sanctions affecting Iran — rose by 17 percent. High flyers in other regions included Canada (output was up 37 percent, nearly all of it due to the rising recovery from Alberta’s oil-bearing sands), Colombia (up 49 percent), Brazil (up 63 percent), and Angola (2.3 times higher in 2011 than in 2001).
But the most remarkable story has been unfolding in the United States, where horizontal drilling and hydraulic fracturing (commonly referred to as fracking, pioneered on a large commercial scale by natural gas producers) have been rapidly adopted by oil drillers and have led to a remarkable turnaround in U.S. crude oil extraction. Until 2008, the country’s crude oil production kept following its long-established gradual decline (the output peaked in 1970 at 533.5 Mt), and between 2001 and 2008 it dropped by nearly 13 percent, from 349.2 Mt to 304.9 Mt.
The reversal has been impressive: from 2008 to 2011, extraction rose by nearly 50 Mt to just over 352 Mt, a level last seen in the year 2000; the increase over those three years was more than the total 2011 output of such oil powers as Indonesia or Azerbaijan. North Dakota (Bakken shale) has been the principal locus of this production renaissance. At the beginning of the year 2000 there were fewer than 200 oil wells producing from the Bakken deposits, averaging about 10 barrels a day per well; by October 2012, there were nearly 4,800 wells with average daily flow of about 140 barrels of oil per well. North Dakota’s oil output was 37 percent ahead of Alaska’s North Slope extraction and behind only Texas and the offshore production in the Gulf of Mexico.
A forecast by the U.S. Department of Energy sees a possible production increase of as much as 140 Mt/year by 2025, and the most recent review by the International Energy Agency (IEA) even sees the United States as the world’s largest crude oil producer as early as 2017. That may be too much to expect but, in any case, U.S. oil output disproves any preordained and immutable validity of Hubbert’s curves (which attempt to infallibly predict U.S. and world oil output for decades to come! No wonder that Leonardo Maugeri, the former senior executive vice president of strategies and development for Italy’s largest oil and gas company, ENI, speaks about a genuine oil revolution).
Total output in the Middle East in the decade after 2001 rose by 17 percent.
But the IEA also says that the world has already reached the peak of conventional oil extraction and that the continuing rise in output is now due only to rising recovery of unconventional sources including extra heavy oil, oil sands, and gas converted to liquids. But that conclusion rests on accepting an arbitrary divide between the two categories. The oil industry has always pushed the boundaries of extraction: going first deeper as rotary drills displaced old percussion drilling, then offshore but within the sight of land in shallow waters, then far offshore in deeper water, then deploying directional and horizontal drilling and recovery of heavy oils, and (starting in 1967) extraction of oil from tar sands.
The IEA admits that “the categories ‘conventional’ and ‘unconventional’ do not remain fixed, and over time, as economic and technological conditions evolve, resources hitherto considered unconventional can migrate into the conventional category.” Indeed, they have been doing so for decades, and will do so for decades to come.
Obviously, there will come a time when global oil extraction will reach its peak, but even that point may be of little practical interest as it could be followed by a prolonged, gentle decline or by an extended output plateau at a somewhat lower level than peak production. At the beginning of 2013, there are no signs that the beginning of this new oil era (regardless of its specific course) is imminent, and forecasting its onset remains an exercise in futility. Only one thing is abundantly clear to me: for the past 15 years I have been quite confident that there is no imminent danger of any sharp peak of global oil extraction followed by an inexorable production slide — and early in 2013 that confidence is greatly strengthened by new facts. Is it too much to hope that even some catastrophists and peak-oil cultists will find it impossible to ignore those numbers?
Vaclav Smil does interdisciplinary research in the fields of energy, environmental and population change, food production and nutrition, technical innovation, risk assessment, and public policy.
Image by Dianna Ingram / Bergman Group
Ping
Sadly, here on the Bakken our success is also our downfall.
Where is the idiot that says it would take 20 years to develop an oil field?
5 years on the Bakken and we have developed enough wells to outgrow our ability to ship our product to market
heh heh heh...”Peak Oil”...heh heh heh....
ping ping
I am laughing, too - this ain’t no fossil fuel for cryin’ out loud....
Teachers as Armed Guards in Michigan: Small-town police chief trains teachers as reserve officers.
Why Blacks and Women Should Not Have Guns
More advice from Joe Biden: 'Just fire the shotgun through the door'
Buy a Shotgun Joe Biden Lying AR-15 and a sadistic or incompetent introduction to 12 gauges.(youtube)
Teachers as Armed Guards in Michigan: Small-town police chief trains teachers as reserve officers.
Why Blacks and Women Should Not Have Guns
More advice from Joe Biden: 'Just fire the shotgun through the door'
Buy a Shotgun Joe Biden Lying AR-15 and a sadistic or incompetent introduction to 12 gauges.(youtube)
Some noteworthy articles about politics, foreign or military affairs, IMHO, FReepmail me if you want on or off my list.
Teachers as Armed Guards in Michigan: Small-town police chief trains teachers as reserve officers.
Why Blacks and Women Should Not Have Guns
More advice from Joe Biden: 'Just fire the shotgun through the door'
Buy a Shotgun Joe Biden Lying AR-15 and a sadistic or incompetent introduction to 12 gauges.(youtube)
Some noteworthy articles about politics, foreign or military affairs, IMHO, FReepmail me if you want on or off my list.
Thanks for the ping!
Memory Lane Ping!!! (snort!)
Memory Lane Ping!!! (snort!)
Got to read this tomorrow.
I read in National Geographic that oil would run out by 1997. That was back in the seventies.
Those damned dinosaurs must have been lined up end-to-end.
On my bookshelf in my office I have a copy of When the Oil Runs Out, published in 1947.
I keep it as a reminder that there is always someone who will panic at the thought of not having a commodity we regard as essential, and a monument to the underestimation of human ingenuity.
We have been warned of "Peak Oil" before. We aren't there yet--in fact, oil and gas extraction is experiencing a phenomenal growth curve. The world could experience unprecedented prosperity if the politicians don't mess that up.
That is not to say that some day we won't reach the point where there is no longer an economically viable reservoir to tap to fill demand, but by that time we should have found a replacement technology and means of powering it, provided we continue to do the basic research we need to make those developments.
That gives us time to find, develop, and refine that technology, unlike the current push to take an immature technology to production for political (and possibly less than ethical economic) reasons.
-——the most remarkable story has been unfolding in the United States-——
This is the reason Obama can have his cake and eat it too. He can oppose the Keystone pipeline and drilling in the Gulf or on Federal lands and appease the rabid wackos that hate everything. Meanwhile, Americans, real Americans, are growing the oil business.
Editorial...... The recent surver flap is apparently over but the old problems of slow service and triple pings remain.
Peak Oil
Club of Rome
Population Bomb
Nuclear Winter
Global Warming
Global Cooling
DDT
Alar
Ways liberal elites use lies and hysteria to control their ignorant supporters...
Don’t forget radon gas and ozone depletion. Ozone depletion was the “trial ballonn” for “global warming” and it’s just as big a hoax.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.