Dave5577

Don't Believe Long-Term Oil Forecasts

Oil demand will grow at least 1 per percent annually for many years on average. Consider how the developing market economies have been growing. They are buying more gasoline powered vehicles than americans by a wide margin. And consider that their vehicles are not replacement vehicles, they are creating entirely new demands for oil. We generate 25 percent of the global oil demand, and although our share may slowly drop due to conservation and alternatives, the rest of the world too realizes that gasoline at even 5 or 6 dollars a gallon offers tremendous value. They will not be driving 18mpg vehicles, but rather 40 or even 60mpg vehicles so that the costs are still a great value for what you get. One can either ride a bike to work for 20 miles or drive a small vehicle to work and back for 4 dollars, or even a dollar if you get a few passengers to split the cost. We will also see the dollar devalued even if we do not see high inflation. Our economy in the USA is a basket case and the printing presses and mouse clicks will be going full speed to keep the economy afloat.

Exxon Mobil: Further into Oil Sands

Some companies are using SAGD to remove the oil. This leaves a small footprint. See Connacher Oil website and others. Steam Assisted Gravity Drainage (SAGD). Pumps then pump out the pooled oil. Extraction cost can be relatively low and the environmental damage is minimal. Also SLB.NYSE is developing tuned microwave heating to pool oil. However , I prefer building a hundred or so nuclear power plants to help us ease the ultimate transition away from oil. Many environmentalists however do not approve of nuclear energy. This is unfortunate in my opinion.

Long SLB and CLL.TO

For Your Perusal: The Glory of Free Market Oil Supply

Another indication of peak oil perhaps. Show a chart of their acquisition expense and exploration and development expenses over the same time period. And do not forget the long lead times to bring new oil to market...at times it can be 10 years or more with permits and the like.... Basically a chart that does not indicate what the author says it indicates.