Posted on 07/04/2016 7:15:41 AM PDT by bananaman22
The collapse of oil prices has killed off any appetite that the oil industry had for megaprojects that cost tens of billions of dollars. With scarce resources, oil companies have shifted their focus, pouring resources into short-cycle projects, which often means shale drilling.
Liam Denning over at Bloomberg Gadfly put some numbers to the phenomenon, using data from Oslo-based Rystad Energy. The data is revealing, painting a portrait of an industry that has scaled down the size of new oil projects. Intriguingly, the focus on smaller oil fields began before the plunge in oil prices, although the price crash is accelerating that trend.
Spending on oil fields that hold more than 1 billion barrels of reserves rose by 12.5 percent annually between 2000 and 2014. However, spending on oil fields between 30 million and 1 billion barrels increased by 15 and 16 percent each year. Moreover, spending on these smaller fields will grow by 12.5 percent per year through the rest of the decade, double the rate of investment in the mega oil fields.
(Excerpt) Read more at oilprice.com ...
You can’t squeeze blood out of a turnip, but apparently you can squeeze oil out of many rocks.
That’s a good thing, BTW.
I think that maybe I'm dreamin'.
The reality is that the US has over 270 YEARS of proven oil reserves in the Green River shale formation alone. And that’s at today’s consumption rates. And it’s affordable to extract at today’s prices ($45+ per barrel).
We could be a next oil exporter - 8 million barrels a day - if we chose. That alone would nearly wipe out the trade deficit.
“We could be a next oil exporter - 8 million barrels a day - if we chose”
Which we never will choose to do with a bought and paid for Congress, White House and MB infiltrated State Department, all paid for by the Saudis as far back as Bush daddy, corrupt Clintons, Bush spawns and now that doubled down Sunni worshiping obama creature,
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