The answer, very simply, 'Cezary', is no. 'Peak oil' is an outdated bit of scare-mongeerinng stuff put out by by some vey dodgy people in the seventies, and whose agenda or motives are very much open to debate. Though they made shedloads of money promoting their stupid theories. 'Peak oil'? Doesn't exist, my friend.
Will oil resources PEAK? That is the real question. We already passed peak Conventional oil in 2005. That is not up for debate. We are just waiting for the peak of expensive crap oil.. in which Americans can't really afford without the Fed & U.S. Govt propping up the markets (and shale energy industry). The wildcatters during the early 1900's were finding oil fields in the United States with an EROI between 100-1,000/1. Those peaked. Now, we get to screw around with drilling like rabbits the Bakken and Eagle Ford to produce oil at a lousy EROI of 5/1. And that will peak too. NOTE: EROI = Energy Returned On Invested So what's next? How about that lower grade Oil Shale which the USA supposedly have 1 trillion barrels of resources in the West? Oil shale has an EROI of less than 2/1. The companies drilling in the Bakken were losing their shirts even when oil prices were $90-$100. How in the living hell are we going to produce crappy oil shale at an EROI less than 2/1? Possibly American ingenuity and technology will solve our problems. Unfortunately, the more technology we throw at a problem, the more the EROI declines...LOL. The United States drilled a massive 35,699 wells just in 2014 to produce its petroleum liquids, whereas Saudi Arabia drilled a paltry 399 wells. When a country has to invest so much energy in producing its energy, there's a hell of a lot less energy available for the MARKET & ECONOMY. This is not rocket science, just plain common sense. Furthermore, the more technology is used to get the energy, the less energy is available for the market as well. So, technology is not the solution, but rather a curse. I believe we are going to see the peak and decline of U.S. Shale Oil production within the next year or so... and it may be currently happening due to the low price of oil. This will put severe stress on the Fed and U.S. Govt's ability to PAPER OVER the financial and economic problems. The Fed and U.S. Govt have been able to paper over the financial system that died in 2008 because we brought on more expensive Shale oil and gas. We must remember, the U.S. and World need a growing oil supply to increase its GDP.
RE: Re: Oil Price
DP, does seem a bit ironic that as soon as the Oil price drops, the majors are daggers drawn against the Government-and got tax concessions-pleading poverty because there had been a drop in the price. Strangely the drop at the pumps was fairly negligible, because the Majors say there is no correlation between recovery (downstream) and sales at pump (upstream) but wait a moment..........................the price per barrel is starting to climb over last two weeks and what has happened ??????? it has started to rise at the pump ? strange that ? Will they give back the tax break when the Barrel price is restored to its former glories ???? The majors want it all ways and they are most definitely at this very moment trying to screw little QFI not just into the ground but underground I imagine
Re: Oil Price
Morning Alex We need to hope that it will have a positive outcome on the Oil Major Bean Counters to open up their coffers even just a little
RE: oil price creeping up
Morning DP, hope slow recovery acts as a catalyst ?
oil price creeping up
Bloomberg Brent Crude $66.02 Was above $64 most of last week
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