Posted on 08/17/2014 3:17:37 PM PDT by ckilmer
Scott Scheffield, CEO of Pioneer Natural Resources, recently made the news when he stated that he believes U.S. production could not only beat our old record, but could double from last year’s levels to 14 million bpd.
Why would the CEO of a major U.S. oil company make such grand claims? This article will explain the reasons for Mr. Sheffield’s optimism regarding U.S. oil’s continued renaissance and the ramifications for international energy markets and the U.S. economy.
It could but it won’t.
The powers that be don’t want us to be Energy Independent.
And OPEC, the US government and oil companies do not want oil at far under $100.
And the USA consumes 19 million bpd.
When was the last time someone was described as a “recycling baron” or a “green energy baron” or a “organic foods baron” do you think?
The USA would not be energy independent producing 14 million bpd. We would still be importing 5 million bpd.
No but it would be a big step towards it.
You really think we cannot be Energy Independent if we wanted to be?
The price of oil would have to rise to about $150 per barrel for US production to reach 19 million bpd. Otherwise it would not be economic to pull the oil from the ground.
That is $6 per gallon gasoline.
The other way is to reduce demand.
“The other way is to reduce demand.”
Which would lower prices and production.
The other consideration is how long can energy independence be sustained.
How long could we produce 19 million bpd?
I have seen estimates from roughly 10-20 years.
You can put foreign workers to work, and pay money into foreign treasuries, or you can put US workers to work and pay money into US tax bases and into the US economy.
According to analyst firm IHS, $890 billion in new energy investment through 2026 could create as many as 1.1 million new, high-paying jobs, and increase the economic growth rate by 0.75% per year.
I think that understates it. Anything approaching energy independence, at least North American energy independence, would turn this economy around so fast your head would spin.
Depends.
If we lower demand domestically but global demand rises by enough to compensate then no.
True.
By then we’d have another source, like fusion, sawgrass biomass, coal gasification or who knows what.
We came up with the atomic bomb and put a man on the moon.
Energy independence is child’s play compared with those two. All that’s lacking is the will.
And OPEC, the US government and oil companies do not want oil at far under $100.
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Agree. And this will likely help keep oil prices in the $100 range until +-2020 or so. However, high oil prices will make Sheffield’s prediction of 14 million barrel’s a day inevitable. Why? because fracking oil is high cost oil production. According to Sheffield, the only thing that stands in the way of 14 million barrel @ day US oil production is....low oil prices.
Eventually however, say after +-2020 oil prices will start to fall because of demand destruction caused by natural gas houses trains trucks and buses and electric cars.
.
It could but it won’t.
The powers that be don’t want us to be Energy Independent.
................
that’s just it. the only thing that stands in the way of 14 million barrels @ day in low oil prices. ... however, the powers that be currently want high oil prices. principally because the powers that be in the oil industry are government controlled oil monopolies around the world that require high oil prices to feed their governments.
Nope, putting a man on the moon is relatively child’s play when you have the Federal governments black check and a single mission.
East European Jews figured out that the atom bomb was theoretically possible. That was the genius and difficult part. The US government figured out the specific formula by using massive dollars and man hours to figure out the exact recipe.
This is the forever war. We can’t write every energy consumer a blank check.
Maybe a genius at MIT or Cal Tech will figure it out. Put you simply can’t force genius results with a massive check and massive man hours.
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