Cheap oil suffered a double blow
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by: xiao
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Word Count: 402
Date: Mon, 9 Aug 2010 Time: 1:13 AM
In the energy boom of the oil industry executives constantly accelerating treadmill with an analogy to explain why they regard powerless to reverse the trend of oil prices soaring?? The same development costs can be less and less exploitation of the oil. 2000 to 2008, mining expenditure increased by 3 times, but the supply growth is almost spot did not move.
At the same time, finally a small increase in supply of new demand from developing countries were looted. Because nearly half the world's oil output comes from the reserves gradually reduce oil giant and super giant, and nearly one-third from the 70s of last century before the discovery of oil, therefore, in order to maintain production, mining will have more and more complex small oil fields.
This argument has recently suffered a double blow. First, oil prices plummeted last year shows that demand for oil is not so inflexible. Understanding of another point not so well: that technological progress has brought many new oil fields have been discovered. Deep sea salt paste the Brazilian coast is likely to be another layer of North Sea oil field, offshore in the Gulf of Mexico and Africa are found in the deep sea oil field. In addition, the shale gas resources make the United States from the shortage into a glut of natural gas reserves.
Similar geological formations around the world, the structure may mean that people may underestimate the potential reserves of hydrocarbon resources. However, if there is no stimulation of seismic modeling of high oil prices and drilling technology, they are impossible.
Therefore, even if "peak oil" theory is established in the geological point of view, but taking into account the high oil prices, and human intelligence, we should adjust the current supply is expected to do? Simmons & Co energy professional organizations that do so quickly to conclusions. Large offshore oil field development costs are expensive and often quickly reach peak production, the contribution of the shale may not be offset by a reduction in conventional oil reserves. Even more than offset the exploitation of oil shale need large-scale infrastructure construction. Replace the existing collection system, and one fifth of the refinery upgrade, may take 17 trillion U.S. dollars.
The world oil depletion from the day a little further than previously expected; but exhausted from the days of cheap oil may not be as recent reports of new oil fields are believed so far.
