Posted on 02/11/2020 7:32:20 AM PST by SeekAndFind
Just when we thought it was safe to assume a reliable supply of oil due to the miracle of fracking, liberals have come up with a new excuse to shift from fossil fuels to renewables. They've discovered — as everyone invested in oil has known since before the early 2000s — that fracked wells are frontloaded, producing their largest return in the first year or two after completion.
The most productive fields at present are in the Permian Basin of West Texas. So it's not surprising to find analysts bemoaning "peak Permian," as Julian Lee wrote in a Jan. 26 Bloomberg opinion piece. The reality is that oil and gas production from the Permian Basin is at or near an all-time high and that any pull-back in the near future may be the result of low energy prices, which have discouraged new well starts.
But what happens if production eventually does fall off, as it will, from recent levels in the Permian? U.S. production will fall — unless new wells are drilled to replace those just a few years old. Unless...there's more to the Permian than critics think. Advances in recovery technology have steadily increased the percentage of reserves that can be recovered in any one field. There is every reason to believe that more efficient methods will be developed in the future.
Unless...old fields, such as the Anadarko and Woodford shale basins in Oklahoma, are re-drilled using fracking techniques. Unless...New York State and other areas now closed to fracking are opened up. Unless...offshore fields, which, according the U.S. Minerals Management Service, contain as much as 115 billion barrels of recoverable oil (an estimate subject to increase), are opened up for drilling. Unless, unless...
The truth is that "peak oil," the anti-drilling rallying cry for more than half a century, is an ideological concept, not scientific fact.
(Excerpt) Read more at americanthinker.com ...
Its not about peak oil. its about EV’s. they’re going to kill the demand for oil. Even GM has recently announced they’re going all electric.
Well, if we ARE at peak oil, and the lefties want to go fossil fuel free, the problem will solve itself over time as oil becomes scarce and expensive, and we have to replace it. Of course, if you say no nukes, then a lot of the new electricity will likely be provided by coal. (see Japan)
XOM is yielding 5.5% and is not going away.
The first thing they need to understand is that there is no such thing as “fossil fuel.”
Wow. Peak Oil. One of the theories that drove me to become a Petroleum Geologist in 1972. We were supposed to run out by the end of the decade (1980). I guess we must have done a pretty good job, because now we are not importing any oil. When I went into the business, we were importing about 1/3 of our oil..
EVs still need natural gas.
have had Exxon for over 35 years. Not sure to hold or sell. Even Jim Cramer says oil is in trouble. I am in the Trucking business and know that demand for diesel is not going away but for cars we will see movement to EV.
I do like the dividend on Exxon but like the shares better at $105 in 2014 than today’s value.
And what produces the majority of electricity? Natural gas, coal and in smaller cases, oil. A report a while back said that for wind farms to produce electricity for, say, LA you’d need a wind farm the size of Arizona; plus, it takes electricity to power those electric wind generators to a peak of 3Kw.
And if they demand the end of oil production they better be the first ones to peal off all their oil produced clothing and go live naked in an alley eating weeds.
I would agree about the old wells coming alive after being framed again.
Near mountain view wyoming I was on a swab rig working on a well that had been drilled in the sixties.
The framed it and it came back to life
Petroleum has lots of uses, not just for cars and trucks.
Be nice if EVs become a significant factor in the transportation mix.
Probably at least two decades out.
Battery technology is still not up to it.
The Green River Formation contains the largest oil shale deposit in the world. It has been estimated that the oil shale reserves could equal up to 3 trillion barrels (480 billion cubic metres) of shale oil, up to half of which may be recoverable by shale oil extraction technologies.
To put that volume into perspective, From 1969 to 2018, a fifty-year span, the world has consumed 1.306 trillion barrels of oil.
So, in a SINGLE location in the US alone, there resides MORE (eventually) recoverable oil than the WORLD has been used in the last 50 years.
Peak retardation.
So how do the snowflakes plan on charging their toy vehicles once coal plants are no longer around to re-charging them? Wind mills? LOLOLOL
The electricity charging the ev doesn’t come from an unlimited supply in the wall behind the outlet in the pantry...
We will more than likely hit peak demand before we hit peak oil. We may, from time-to-time in the next decades hit peak rate that will come and go but probably not peak oil.
I thought the future was gonna be powered by DiLithium Crystals, not a bunch of butt ugly windmills!
The "oil shale" in the Green River formation is different than "shale oil" in the Permian Basin. "Oil shale" contains kerogen which when extracted, can be processed into oil. "Shale oil" is oil trapped in the shale deposits.
Nobody has economically produced oil from "oil shale."
Which is why they are yielding 5.5%. Dividends look great sometimes and sometimes they are if the underlying share value continues to appreciate with inflation and a bit more. Otherwise they are harvesting the future.
Exxon will continue to do well with the discoveries in Guyana but it is a big company and it takes a lot to replace production each year. I never bet against Exxon though.
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