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That is because extraction technology has improved significantly since the. I reopened two wells that were declared dead in 1980. They pump more now than when they were brand new. They can drill wells three times deeper now than the early 80's. New finds in the Gulf of Mexico alone are bigger than many countries have in reserve. Venezula has new finds that Hugo will not fork up the money to drill for. BTW as the price rises consumption will drop at some point it will drop significantly. Growth is currently below the estimated 2%. Owners of oil reserves are NOT going to inflate the numbers since in many cases they have to pay taxes on the reserve even if it is not yet tapped. Below is a VERY fair look at the situation. Some people do not agree with the 6BB number they think it is larger.

http://www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/2004/worldoilsupply/oilsupply04.html

That is because extraction technology has improved significantly since the. I reopened two wells that were declared dead in 1980

OK if this is the case why is US production still declining?

I have no doubt that what you say is true. But! It's not going to take up the slack that is caused by a constant increase in demand. The only way that demand is going to fall enough is for prices to stay high enough to impact the economy negatively. It would have to take large scale conversion measures that still allowed the economy to expand.

I’m sorry but I don’t see that in the works here. The world economy is acting like a fungus it will feed until the food dries up then die off. It may do that over and over until we cross peak oil. But we don’t have anything that can deliver the energy that oil can. I don’t see people coming to understand what a world without cheap oil is going to be like.

Even if the west does start doing any of this stuff it’s just going to allow China India and Russia to use the oil that we save here. They are not going to do anything that is going to cost them anything near what it’s going to cost to get off oil.