China was a net exporter of crude oil not long ago. Now it imports oil, not because production is down but because their economy is becoming developed. The same thing is happening in India, and together those two countries have about half of the entire population of the world.
The world currently consumes about 12.5 terrawatts of energy, but it is projected to consume 100 terrawatts of energy by the end of this century. That's equivalent to the production capacity of an additional 51 Saudi Arabias per year.
Not even the most optimistic oilman thinks that we're going to we're going to make those kinds of discoveries during this century.
We're certainly not going to make up that shortfall in energy supplies with windmills, biomass, or solar energy. There is only one source of energy that can make up that gap. Nuclear.
Perhaps we can harness fusion energy someday, and that will be the ultimate answer. But until then, energy will largely come from hydrocarbons and nuclear power. We will have to build more nuclear plants in America. We will have no choice.
Well said!
I agree, but for different reasons.
In my opinion, it's not a question of finding the reserves.
It's a question of being able to produce those reserves at the capacity necessary to keep up with world development.
Our industry has been running scared since the mid-80s.
I see it everyday, as I'm sure you do.
We don't have the equipment or the manpower to handle boom times because no one is confident that the price will hold long enough to recoup their investment.
We just moved a 20,000' rig 450 miles to drill a 12,000' well, and we've been waiting on this (or any rig) for over a month.
Rigs are tight, and manpower is tighter.
Casing is becoming scarce, and it's going to get worse as China consumes the steel production of the world.
Every service company is faced with the same dilemma - turning away work because of the lack of equipment and people - but they're afraid. They got burned too bad in the 80s to view this present volatile market as long term.
It will be interesting what happens when oil hits $75 a barrel and hangs there.