Wednesday, May 16, 2012

Chevron VP: Peak Oil is Peak Nitwitery

Well, he didn't say that exactly but......

From today's Fuel Fix:

"Technology advancements in the energy sector can boost oil and gas production, improve safety and curb fears that fossil fuels are rapidly running out, a Chevron official said today. During the opening session of a Houston energy conference this morning, Jay Pryor, Chevron’s vice president for business development, touted a number of technology advancements that have improved the efficiency and safety of fossil fuel production, including enhanced oil recovery, 3D seismic imaging, horizontal wells, and hydraulic fracturing.

“Because of technology, we are producing in places once just dreamed of,” Pryor said, at the 10th annual KPMG Global Energy Conference. “In lifting those reserves, we’ve raised doubts about the eminence of peak oil.”

Technology has allowed the industry to cut the cost of production, increase the volume of fossil fuels captured, reduce environmental impacts and reach previously inaccessible deposits of oil and natural gas. Global reserves of oil and natural gas have grown 130 percent since 1980 and more than 30 percent since 2000, Pryor said.New methods for extracting more oil and natural gas from the ground have been particularly important to growing production volumes, Pryor said.

The natural flow of oil from wells only accounts for 15 percent to 20 percent of the total volume produced today, he said. Easing the flow of fossil fuels using water, carbon dioxide and other methods can enhance production by as much as 25 percent.

“And now the combined application of horizontal drilling and fracking can add another 10 percent,” he said. “Each of these technology advances unlocks more resource and reserves.”
Deep-ocean drilling holds among the greatest promises for expanding oil and natural gas production, Pryor said. He noted that in the 1950s, the industry was limited to drilling in water depths less than 100 feet. Today, wells are being completed 10,000 feet below the ocean’s surface."

13 Comments:

At 5/16/2012 10:37 PM, Blogger JohnL said...

We'll never run out of oil, it will just get really expensive and we'll move on.

 
At 5/17/2012 2:43 AM, Blogger PeakTrader said...

There must be another explanation, besides "Peak Nitwitery," why two-thirds of oil producing countries reached peak oil production.

Some countries that reached Peak Oil:

Country - % Off Peak - Peak Year

United States -35% 1970
Venezuela -32% 1970
Libya -45% 1970
Kuwait -17% 1972
Iran -29% 1974
Indonesia -41% 1977
Romania -68% 1977
Trinidad & Tobago -35% 1978
Brunei -33% 1979
Tunisia -25% 1980
Peru -39% 1982
Cameroon -54% 1985
Russian Federation -14% 1987*
Egypt -23% 1993
India -1% 1995*
Syria -33% 1995
Gabon -36% 1996
Argentina -23% 1998
Colombia -26% 1999
United Kingdom -47% 1999
Uzbekistan -42% 1999
Australia -31% 2000
Norway -28% 2001
Oman -24% 2001
Yemen -33% 2002
Mexico -17% 2004
Malaysia -5% 2004*
Vietnam -26% 2004
Denmark -26% 2004
Nigeria -16% 2005*
Chad -27% 2005*
Italy -15% 2005*
Ecuador -6% 2006*

"Only 14 out of 54 oil producing countries and regions in the world continue to increase production, while 30 are definitely past their production peak, and the remaining 10 appear to have flat or declining production."

 
At 5/17/2012 6:16 AM, OpenID moneyjihad said...

But never underestimate the capacity of the left to retard oil development by imposing laws and regulations against the use of such new, innovative techniques.

The left is already hard at work trying to convince people that fracking will lead to an earthquake that will destroy your city.

 
At 5/17/2012 8:02 AM, Blogger juandos said...

"There must be another explanation, besides "Peak Nitwitery," why two-thirds of oil producing countries reached peak oil production"...

Maybe the definition of 'peak oil' needs to be reclarified...

 
At 5/17/2012 9:33 AM, Blogger Hydra said...

....and curb fears that fossil fuels are rapidly running out,....

===============================

But all that stuff is going to cost money. It is nice to know that we won't have to be afraid of running out of oil, while we run out of money to buy it with.

 
At 5/17/2012 9:54 AM, Blogger bart said...

PT - got a link for that data?

 
At 5/17/2012 10:35 AM, Blogger marmico said...

An updated list compliled by the same source (analysis of the BP Statistical Review) as Peak Trader's list.

 
At 5/17/2012 11:37 AM, Blogger Howard R. Lowe said...

Petroleum engineer/geologist - 6 decades in the oil patch. Compare the per barrel cost of oil in US with Saudi Arabia - US: over 500,000 wells (almost all pumping) produce 5.7 million barrels of oil oper day. Saudi Arabia: about 1,500 wells (almost all flowing)can produce 12 million barrels per day. American domestic production can never overtake Mddle East on reserves or daily production.

 
At 5/17/2012 12:31 PM, Blogger Jon Murphy said...

American domestic production can never overtake Mddle East on reserves or daily production.

Why?

 
At 5/17/2012 2:21 PM, Blogger Hell_Is_Like_Newark said...

Oil is also being found in areas that were thought to not have oil. Vietnam became an oil exporter in part with the discovery of the Black Lion oil formation.

This formation was found in non sedimentary rock (granite). Oil is usually found in shale and sandstone formations.

I think Black Lion produces in the 90k to 100k bbl per day range.

 
At 5/17/2012 2:28 PM, Blogger Ken said...

But all that stuff is going to cost money. It is nice to know that we won't have to be afraid of running out of oil, while we run out of money to buy it with.

Because as we all know, with all the new sources of oil and gas discovered and new technologies making it cheap to get previously expensive gas, prices have to spike, right? Everyone knows that increased supply means higher prices, right?

Also, the price of gas isn't much more than what it was in 1982, and seeing as how Americans (and most everyone else) is richer today than in 1982, the cost of gas as a percentage of income is lower.

 
At 5/17/2012 4:19 PM, Blogger Ron H. said...

Ken: "Because as we all know, with all the new sources of oil and gas discovered and new technologies making it cheap to get previously expensive gas, prices have to spike, right? Everyone knows that increased supply means higher prices, right?"

I'm not sure - maybe Larry G. will weigh in on this. He's our supply/demand expert.

 
At 5/17/2012 5:52 PM, Blogger VangelV said...

It seems to me that there is a huge difference between the statement, "In lifting those reserves, we’ve raised doubts about the eminence of peak oil," and the interpretation, "Chevron VP: Peak Oil is Peak Nitwitery'.

 

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