Quote of the Day: Betting on Progress, Technology
The “Peak Oil’ers” tell us that there are no new “whale” oil finds to be found; that the drilling to find crude oil is too expensive and that further exploration is a waste of time. The problem is that they are wrong. As we like to say, the world did not stop using Whale Oil to light its lamps in the late 19th century; the world stopped using Whale Oil because its cost had gotten too high creating the “technology” needed to find a new source of energy, fossil fuels. Now, the technology involving seismic geology, and the technologies involving multiple drilling points from one initial hole in the ground, et al has succeeded in finding new, massive oil pools… most of which is now offshore where the finding is good and getting better.
Twenty five years ago, oil was not drilled for in water deeper than 600 feet. The platforms were not stable; the pipe too weak; the technology simply not extant. Now, however, oil drilling firms are comfortable drilling in water 6000 feet deep, and the huge new oil finds reported two weeks ago by Anadarko Petroleum found off the western coast of the African nation of Sierra Leone was drilled for and found in water that deep. Two years ago, Anadarko found another huge pool of oil in deep water off of the Cote d’Ivoire and Ghana. BP recently found a “whale” in deep waters in the Gulf of Mexico, and Petrobras continues to drill for and find huge new pools of crude off shore from Brazil in ever deeper water.
We tell the “Peak Oil-ers” to sit down and shut up, for they are wrong. They are bettors in favor of antiprogress… in stasis… and we are far more willing to bet in favor of progress, and of technology and of the eventual replacement of fossil fuels with something else entirely. Betting on progress has been the better of the bets to be made through history; we’ll go with for a while longer anyway.
~Dennis Gartman in today's The Gartman Letter (subscription required)