Posted on 04/17/2017 8:08:09 AM PDT by bananaman22
The 2020s could be a decade of disorder for the oil markets as the lack of drilling today leads to a shortfall of supply. Demand will continue to grow, year after year, and shale will not be able to keep up.
It may be hard to envision today, with an oil market suffering from low prices and a glut of supply. Falling breakeven prices have drillers still churning out huge volumes of shale oil, with production in the U.S. already rebounding and rising on a weekly basis.
The tidal wave of shale, however, is the direct result of extreme market tightness a decade ago, which pushed oil prices up into triple-digit territory. The rapid rise of China and other developing Asian countries in the early 2000s put the squeeze on the market, as conventional production struggled to keep up with demand. High prices sparked new shale drilling in the 2010-2014 period, which, as we now know, brought a lot of supply online. That, subsequently, led to a price meltdown.
(Excerpt) Read more at oilprice.com ...
Hubbard’s Peak is always 10 years away.
The sky is falling!
Remember, Iran is stilling on a MASSIVE amount of crude oil yet to be tapped. As such, we're still a long, long way from depleting the Middle Eastern oilfields.
I will believe the former CEO of Shell before anybody. He said that we have enough in our KNOWN reserves for centurys at the present use.
He also said that in the next couple of decades or so, we will have alternative energy methods for transportation.
“Peak oil is now.” German Energy Watch Group 2008
“By 2012, surplus oil production capacity could entirely disappear.. ” U.S. Department of Defense 2008 & 2010.
“A global peak is inevitable. The timing is uncertain, but the window is rapidly narrowing.” UK Energy Research Centre -2009
“The next five years will see us face the oil crunch.” UK Industry Taskforce on Peak Oil and Energy Security 2009
>>The sky is falling!<<
Asteroid to destroy Earth: women and minorities hardest hit
But aren’t those data points consistent with the article? I read the article mainly about investment/capex in order to get that supply moving....not saying that supply is limited geologically speaking.
The world is awash with oil. I don’t think anyone can dispute that. But it still has to be gotten out of the ground, etc. And that still takes investment, and that investment hasn’t really happened since the price collapse.
Meanwhile, demand continues to creep upwards.
Hence, the coming rise in prices, not because supply is gone, but because it is hindered b/c the infrastructure is not there yet to get at it.
That’s sort of how I read the article....
You forgot “News at eleven”!
This is just another prediction falling into the same category as weather forecasts, market predictions and global warming BS.
Not even good click bait.
Peak oil PRICE is likely to happen sooner than peak oil, given increases in mpg and the use of electric cars.
Then I suggest you purchase Exxon stock. They are betting another $20 billion in the Permian basin.
And on top of what you wrote, close to 30% of all oil use is now non-fuel in nature.
Between worldwide falling birth rates and the rise of electric vehicles, the price of oil will crash in the early 2020s. It will never recover.
Not as many as you might think. Usually with a good or even decent well the production is dialed back closer to that of a stripper well (10 barrels or less per day.) In Texas, there are no severance taxes on “stripper” wells which effectively creates a price increase of 5% above market if the tax must be paid. Also it eliminates the cost to put a well back in production later on if it was “capped” or plugged and abandoned.
is that what they do with the wells in the Dakotas too?
It’s pretty much an industry practice that saves money in the long term. There are factors to consider such as age of the well, lease operating expense (LOE), number and density of wells on a particular property, etc.
Bottom line: It’s a lot more cost effective to keep one going at lower production than re-work a given well or drill a new one and hope it’s not a “dry hole” or “duster.”
thx
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