anaconda

The 'Peak Oil' Myth: New Oil Is Plentiful

To andre Sautou:
I gree with your analysis except for one HUGE assumption you make: That the energy required to produce the energy will go to a 1:1 ratio as quickly as you imply.

Corn ethanol is less than a 1:1 ratio, I think its about 1 33:1.
That's why corn ethanol is ludicrous to make.
(can only be made with government subsidies)

In the big scheme of things, ultra-deepwater, deep-drilling is still substantially over the 1:1 ratio -- I don't know the exact ratio, but oil companies wouldn't invest in it if it was less than 1:1 ratio.

Almost all hydrocarbons are over a 1:1 ratio. But admittedly some get pretty close to 1:1 ratio to the point they are marginal for economic production.

Liquid hydrocarbons -- oil and gas condensates don't fall into that category.

So your "Peak" gloom and doom, while is right on the analysis of the energy cost to produce energy, is wrong on how soon it will get there, if it gets there at all within a meaningful economic horizon. Over 30 years away and it has no impact on the economics of today.

That's what this blog commentary is about -- the economics of oil today. Not 30,50, or 60 years from today.

Go back asleep and wakeup 30 years from now and cry your "doom and gloom", otherwise you're wasting my time and more important for you -- your time.

So is pointless to "doom and gloom" about it now.

The 'Peak Oil' Myth: New Oil Is Plentiful

To AndyMan:
Nice "trick." Use a theoretical argument to squeeze "Peak" under the tent flap, like the perverbial camel's nose. Then, once an acknowledgement is given to the theoretical, bulldoze on to your real point: "Peak" is now, sorry charlie, it still doesn't wash.

And you crap in your own nest. You get greedy, which makes this writer look at your original reasoning more closely. And after doing so, it is clear your theoretical argument about "peak" is garbage too.

If oil is regenerating faster than it is being consumed -- "Peak" will NEVER happen.

Now this writer doesn't know if it is or not -- but for you to declare "peak" as a fact based on that fraudulent -- yes, fraudulent reasoning, makes this writer question all your other spin.

So lets look at it.

1) "[T]hey have been [depleting] since the first well ever drilled."

Sorry, but this type of argumentation is as fraudulent as your openning original line of about "theoretical peak."

The rational is false. Were they worried about "Peak" at the time of the first oil well? Actually, they were, as the history of the oil industry is repleat with warnings of "Peak." EACH TIME WRONG!

"Flat or most likely declining" This is PURE speculation on your part.
Your style: distract and then frame argument from your perspective.

But this writer put out the first facts: The continental shelf and margin are unexplored. The total verticle depth is reaching Abiotic oil that "fossil" theory said wasn't even there.

There are plenty of areas to explore and increase "flow rate," also we have no idea if these nationalized oil companies are maxed out on "flow rate" or not. This writer suspects there is a combination of under-investment and wanting to "squeeze" the market.

Oil is oil -- there is "easy" and "hard" oil, but the basic commodity is the same -- it's all Abiotic hydrocarbons.

Which from the very first comment, this writer acknowledged deep offshore oil, is expensive oil: $70 a barrel to "lift."

That has nothing to do with physical "Peak." When oil dipped briefly below $10 in the late 90's, the oil companies quit investing. That has effected the was is happening now. So, while this writer agrees you need to increase oil production, there is a logical reason why there has beed a plateau.

Not a decline like you falsely state.

3) In this aspect, actually, this writer agrees with you. But the new oil fields off shore like that Shell field in the Gulf of Mexico rumored to have 100 BILLION barrels, is a sample of the oil deposits that will be found where "Fossil' theory geologists said there would be NONE.

4) Makes sense from an oil chemistry and Abiotic theory point of view that heavier oil will be at the bottom. Agree with your point.

5) Oil will get more expensive to produce, but that's not physical "Peak", that's an argument for economic "Peak." Two completely different arguments -- even the oil companies acknowledge "economic peak." Which in itself, will have some unknown moderating effect on price in the future.

The last part of your argument is an expansion on the your "replacement" strain argument. There is replacement oil -- lots of it. No "Peak" now, Again, like before, someday. NOT TODAY.

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To martinpw: The science is there and convincing.

1) The 15,000 "oil window" limit corollary of fossil theory is garbage, oil has been discovered below 20,000 feet deep 20 times over and more.

2) "Source rock" has been debunked.

3) Biomarkers has been debunked

4) Diamonoids prove oil comes from the mantle (hint Diamondoids are diamonds and they are only greated "At Depth" in the mantel.

5) Helium in oil

6) hydrocarbons in 'solfataric' vents -- sulphur like vents.

7) The known association between the world's biggest oil deposits and tectonic faults all over the world.

8) the Brazilian deep finds are way beyond the "oil window," causing stupid oil geologists to make claims about "burial age and maturation," as if 24 million years isn't enough if there is an "oil window," to crack the oil into methane gas. Sorry, martinpw that argument doesn't pass the smell test.

Sorry, martinpw, Russian CEO's don't talk to anybody publically -- remeber that's Putin's world. People keep their mouths shut.

As for the, Westerns like BP, do you really think they are going to come out and say, " guess what, we were wrong all those years, we put out, those cuddly commercials with dinosaurs in them - oil is practically unlimited." This writer doubts that.

Actually, the two rival "schools" of thought have the same scientific burden to prove their "case." Each starts at the same "starting line."

but you putting out that old canard allows people to assess your regard for scientific principles -- it's far more likely you are a shill for "Peak" oil because you are long on oil.

Although, in terms of practical reality, you are right. The science for Abiotic Theory must be flawless -- It is flawless.

Come on over to Oil Is Mastery website and argue any scientific point, martinpw, and this writer will crush your reasoing. That's how good the science is.

Do you got the 'guts' martinpw?

The 'Peak Oil' Myth: New Oil Is Plentiful

To ART005:
That is a thoughtful response. This writer suspects that regeneration is a function of crustal activity level. And it's possible that now is a moderate to quiet period, so there may not be a large regeneration rate at present.

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AndyMan: If you put if that way, then there is peak. But let's talk "meaningful" peak. This writer maintains that "Peak" a hundred years from now is not meaningful in an economically quantifiable way, today.

When does it become an economically quantifiable factor?

30 years, 40 years, only 20 years? No, if "Peak" happens in 20 years in 2028, at some minor level it will be able to be quantified in the economics of today.

But 30 years, so "peak" in 2038? This writer suspects that is economically too remote.

But this writer is convinced there will be no "Peak" for at least 50 years, if not farther out than that.

"Peak" is when half of all oil supplies have been consumed by textbook definition, but "Peak" as a slang word most definitely means imminent, likely to happen soon, if some are to be believed, already has happened.

This is a far cry from someday there will be "peak."

The 'Peak Oil' Myth: New Oil Is Plentiful

To crobar:
The Oil Drum is not an investing website. It is an "Oil" website, run by folks that believe in "peak" oil. Who underwrites the website is the question, not that they advise where to invest, besides if the charge is true, do you think "speculators" would be so 'ham' handed as to advertise its "purpose."

Second, of course, demand effects the price. But any dramatic drops in price will drive demand back up because oil is inherently is a productive substance. There will always be demand for oil -- unless it is banned.
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To martinpw: Abiotic oil is real. The hard science supporting Abiotic oil is copious. At what rate petroleum is regenerated is unknown.

"Fossil" theory literally has NO HARD SCIENCE supporting it.

Google the website Oil Is Mastery. The website has direct links to scientific papers that support Abiotic oil and contradict "fossil" theory.

Why do you think Russia is the #1 oil producer in the world, more than Saudi Arabia. How? By using Abiotic Principles in their exploration strategies. Laugh if you want, but Russia is laughing all the way to the bank.

The science supporting Abiotic Oil is based on chemical and physical laws, "fossil" theory ignores the numerous violations of chemical and physical laws.

Oil is Mastery is the most complete Abiotic Oil website in the world.
Check it out and don't let stupwitts like martinpw spew ignorance.

The 'Peak Oil' Myth: New Oil Is Plentiful

So, the "Peak" oil crowd and the longoil crowd are in high dungeon over this article. Pretty simple facts.

Sure, ultra-deepwater, deep-drilling is expensive, averaging $70 a barrel to "lift." But the oil is here, there, everywhere.

Fact: proven reserves are at an all-time high.

Fact: Continental shelf and margin oil exploration is in its infancy.

Fact: "Somebody" thinks there's oil down there and is spending big bucks to get it.

Fact: For years, Iraq was "officially" set at 115 billion barrels, now it turns out Iraq has at least 300 billion, more than Saudi Arabia, which inturn probably has more yet.

Fact: Colin Campbell and the other shill mentioned have been caught in so many lies, its sick. And both have been crying "Peak" oil for years -- always wrong, along with Simmons and Pickens. A pack of hacks.

Fact: Most areas haven't been explored "At Depth" when it seems "everyday" oil is coming in at beyond 25,000 feet TVD.

Fact: The west coast of the Americas is virtually unexplored.

Fact: Demand destruction is happening in America, as this writer types. Gasoline demand has gone down in the first world.

Prediction: Demand destruction will happen in the second world -- as they are less able to absorb the cost -- and governments can't subsidize consumption indefinitely.

Sure, oil will never be "cheap" again. There are too many consumers outside the United States, but "Peak" oil was not here, is not here, and won't be here, anytime soon.

Sometimes, you "Peak" oil freaks are too much.

But, hey if you're long on oil and you made your contribution to "The Oil Drum" and the rest of the scare mongers -- this writer understands why your're shilling -- big time -- because $20 off the high and you're in Palookaville.

Better cover your position because there will be a "correction," not big, but down just the same.

Too high a price does cut demand. That's a law of economics that some shills forget!

You know what they say: "you can always con a con, because they start to believe their own schtick."

No "peak" for you charlatons. The 'game' is over.

Oil Is Mastery