Industrialized Cyclist Notepad


Oil Companies Spending More, Producing Less

via James Hamilton via WSJ: http://econbrowser.com/archives/2014/01/big-oil-companies-spending-more-and-producing-less

costlyquestwsj
click to enlarge



North Sea

Long peaked, declining rapidly and getting really expensive.

The sharp decline in production of oil and gas from under British waters is “worrying” industry leaders.

Trade body Oil and Gas UK says there is record investment this year of £13.5bn.

But its annual report on the industry’s economic impact highlights the sharp fall in output of 19% during 2011 and 14% in 2012.

It says the industry’s latest estimates of the continuing decline suggest a further fall of at least 8.5% during this year, with no recovery next year.

[...]

Because of challenging geology and unplanned shutdowns on offshore platforms, the unit cost per barrel for extracting oil from British waters, known as the UK Continental Shelf (UKCS), has gone up four-fold over the past decade.

via BBC News – 'Worrying' decline in oil and gas production.



Egypt in the red
July 28, 2013, 11:25
Filed under: Uncategorized | Tags: , , , , ,

via Energy Export Databrowser:

egyptinthered



From the Department of Did He Just Say That

“Our people want to know why the flood of new domestic crude oil isn’t lowering prices at the pump,” said Ron Wyden, an Oregon Democrat and chairman of the Senate Energy and Natural Resources Committee. “There is no question that the lower oil costs are not getting through to Americans’ wallets.”

via Senators Grill Refiners Over High Prices Amid Oil Boom – Bloomberg.

If Wyden is this clueless about energy — what “lower oil costs”? — it does not give a fellar confidence that he is an effective guardian of civil liberties (Wyden is on the Senate Intelligence Committee which is supposedly a check on the executive branch’s surveillance fetish). Is he just trying to get someone from the industry to admit the truth, or is he really that out of it.



Track Record

Via Kurt Cobb in the CS Monitor:

Back in the year 2000, the IEA divined that by 2010, liquid fuel production worldwide would reach 95.8 million barrels per day (mbpd). The actual 2010 number was 87.1 mbpd. The agency further forecast an average daily oil price of $28.25 per barrel (adjusted for inflation). The actual average daily price of oil traded on the New York Mercantile Exchange in 2010 was $79.61

[...]

So, what made the IEA so sanguine about oil supply growth in the year 2000? It cited the revolution taking place in deepwater drilling technology which was expected to allow the extraction of oil supplies ample for the world’s needs for decades to come. But, deepwater drilling has turned out to be more challenging than anticipated and has not produced the bounty the IEA imagined it would. …

via When oil forecasts get it wrong – CSMonitor.com.



NPR repeats false fracking narratives

As NPR’s Tom Gjelten reports:

“Petroleum engineers have always known about the untapped underground oil in the United States, but it was unreachable, trapped in tight shale rock. Then the engineers figured out how to crack the rock. Hydraulic fracturing — fracking — got that ‘tight oil’ finally flowing in places like North Dakota.”

via Huge Boost In U.S. Oil Output Set To Transform Global Market : The Two-Way : NPR.

Wrong, Tom. The tight oil has been ‘reachable’ for several decades, it was just such an expensive process that it made no sense to do it when oil was cheap — a money-losing proposition. Now, all the cheap oil is gone, and out comes the ‘unconventional’ oil.

Gjelten also said that the decline in oil consumption in the US was due to efficiency (check the VMT chart Tom). There was no mention of depletion of existing fields, or the striking decline rate of fracked shale wells. And he reported that cheaper oil is just over the horizon.

Would it hurt Mr. Gjelten to do just a tiny bit of research on the topic of his reports so he doesn’t sound like a complete idiot?



Offshore Lebanon

…has never been explored for hydrocarbons.

On behalf of the newly formed Petroleum Administration (PA), I would like to welcome you to this website that will focus on matters related to the 1st licensing round for hydrocarbon exploration within the Lebanese offshore EEZ (Exclusive Economic Zone). The PA would also like to thank the Ministry of Energy and Water (MEW) for its continued support during the transition process.

via LEB Licensing Round.

offshorelebanon



30%

Rampant waste and environmental degradation have been part of the Bakken boom. The state doesn’t care about that, but it wants its taxes.

Helms estimates that about 30% of the gas produced in the state is flared, since development of takeaway infrastructure has not matched the pace of drilling.

Producers are currently allowed to flare gas for a year without paying royalties. The new bill would extend that tax-exempt period for two more years if an operator can collect at least 75% of the produced gas.

via N. Dakota tax bills pique industry interest – Upstreamonline.com.



Reality sneaks into mainstream media
January 16, 2013, 12:14
Filed under: Uncategorized | Tags: , , , , ,

Here and there on occasion. Kurt Cobb in the CSM:

Currently, there appears to be no new transformative on-the-shelf technology that will significantly reduce the cost of extracting oil and natural gas. And so, barring a deep economic depression, we can look forward to prices for oil and natural gas that are consistently above the cost of production and therefore far above the bizarrely low forecasts in the air today. In fact, we should expect costs to continue to escalate as we seek out resources that are ever more difficult to extract and refine.

via Natural gas, oil prices: why the long-term forecasts are wrong – CSMonitor.com.



Falkland Islands Oil

From oilvoice.com: http://www.oilvoice.com/n/Falkland_Islands_The_New_North_Sea/614e4d43b.aspx

The prospect of the Falkland Islands developing into a major oil producing region has captured the imagination of geologists and investors alike for decades. For many, the area has significant potential as a new ‘North Sea’, bringing opportunities for oil and services companies for years to come. The exploration area surrounding the Falklands to which the UK has a territorial claim is some fifty percent larger than the UK’s portion of the North Sea. In fact, despite being thousands of miles apart there are many similarities between the two. Environmental conditions and water depth are comparable to those west of the Shetland Islands, whilst in terms of geology the basins of the Falkland Islands possess structures similar to those found in the North Sea. The exploration area itself is separated into the geologically distinct North Basin, where the Sea Lion discovery was made, and the South Basin where fellow explorers Falkland Oil & Gas and Borders and Southern Petroleum intend to embark on their own campaign from the end of 2011 having secured an additional rig.

Despite the recent success, there are still those who doubt the Falkland Islands will ever see large scale oil production.

Falklandsoilprospects




Follow

Get every new post delivered to your Inbox.

Join 81 other followers