Posted by: katakanadian
———————-
Don’t get too used to the low oil prices
The Financial Times has leaked the results of the International Energy Agency’s long-awaited study of the depletion profiles of the world’s 400 largest oilfields, indicating that, “Without extra investment to raise production, the natural annual rate of output decline is 9.1 per cent.”
This is a stunning figure.
Considering regular crude oil only, this means that 6.825 million barrels a day of new production capacity must come on line each year just to keep up with the aggregate natural decline rate in existing oilfields. That’s a new Saudi Arabia every 18 months.
Full article here: http://postcarbon.org/nine_percent
**********************
I’ll make the (completely amateur) prediction that oil will hit $200/barrel within 1-3 years. The gloabl economic crisis may have pushed things toward the longer guestimate but I don’t think we are going to see any significant (i.e. %5+) decline in global demand for oil within that time frame.
——————
Jermyn’s thoughts: hmmm … time to get a hybrid car
- Juggling I was watching Discovery Travel & Living just the other nite and the host was saying how juggling is an amazing way of breaking the ice with many a stranger or traveler. Thoughts to myself ... hmmm .... next thing i know, the training I attended over Friday and Saturday......
- Environment Update: Report Targets Costs Of Factory Farming Excerpts from a report I read. More disturbing news about the toll of farming on the environment: . . . Factory farming takes a big, hidden toll on human health and the environment, is undermining rural America's economic stability and fails to provide the humane treatment of livestock increasingly demanded......
- The Real Score About Low Rate VoIP It is not uncommon for people to look for low rate VoIP. In general, all...
- Sales Alert: Avon products I like Here are some products I like. The link will go directly to the shop of...
{ 1 comment… read it below or add one }
with opec controlling supply i doubt it will fall much and can only go up over time.
(i remember reading read a few weeks ago that they reduced supply to stop the prices from falling)
while i do not know if there’s an cheem economic justification for preventing the decline of oil prices, it leads me to believe that we are at the mercy of the oil cartel.