“Peak oil” is NOT a scam. The cost of getting oil out of the ground in ever-dwindling amounts is growing every year. The E&P oil industry is continually racing to drill more & more wells to make up for the rapid depletion of those recently drilled. When was the last time you heard of a super-large deposit discovery that wasn’t inaccessible by conventional means, requiring hugely expensive technology to reach? The whole industry is built on debt, and the collateral, the oil, is barely worth drilling for at $60/ bbl, let alone $20-$30. This too shall bust. BTW, the EIA estimates of fracked well capacities has been wildly off the mark for years.ROFLMBO. Cute little rebuttal, but waaaaay off the mark in just about every way. There are more proven reserves today than there were 20 years ago when the Left came up with that "peak oil" canard.
The industry is not "built on debt", it is flush with cash. Jobs in the industry pay more than any other, land leases pay top dollar, and they aren't begging DC for handouts all the time.
As for new discoveries, just because you personally haven't heard about them, doesn't mean that they do not exist. http://instituteforenergyresearch.org/studies/new-oil-finds-around-the-globe-will-the-u-s-capitalize-on-its-oil-resources/
Further, if some enterprising young engineer finds a way to efficiently extract the oil sands at the Canadian border, then Canada instantly has more reserves than Saudi Arabia overnight, and become the world's first trillionaire. You think people aren't working on that?
Finally, the deepest well ever dug was less than 5 miles deep. The earth's crust is 20 miles deep. Do you seriously believe that we've found it all already? ROFLMBO!!!
Agreed.
is barely worth drilling for at $60/ bbl, let alone $20-$30.
That was the "canard" when the Saudis flooded the market a few years back.
The Saudis did us a favor. They shook out the industry of the weak players. Those numbers are now way off and much lower.
The biggest issues today are fulfilling the equipment demand for drilling and frac expansion, as well as capacity.
Funny. Everyone keeps hounding on oil. The Permian is doing fine. The real miracle is dry gas and liquids. Why is Shell investing 8 billion in a ethane cracker north of Pittsburgh?
The Utica and Marcellus formations are monsters and will produce for many decades to come.