PEAK OIL NEWS AND MESSAGE BOARDS


WHAT SAVED YOU WAS THE SHALE

"I don't think [Saudi Arabia] can produce much more oil than 10 million barrels a day. Now they pound on their chest, say they can do another 2 to 2,5 million barrels. I don't think that's true. If you look at the record, they have been at 10 million I think 3 times and it was not kept at that level very long. So I think they are doing all they can do. Listen, the world needed us, the world needed the US addition to the oil production. If you go back to 2005 when I said peak oil is here, and if you go to 2005 and stretch it out for OPEC, it's flat. I mean we did peak in 2005. Now where would we be today without the United States? You would be looking at $150, $175 oil ... You need to go back and look at oil production without the United States. In 2005, you peaked. Go back and look at it. If it hadn't been for the United States shale boom ... If you look at 2005, you're finished as far as the rest of the world. What saved you was the shale. It was American industry [that] saved the world one more time."

THE UK OIL INDUSTRY IS CLOSE TO COLLAPSE

"So with great delight we present the latest blowback from Obama's 'brilliant' strategy to cripple Putin: in addition to the default wave about to crush America's own shale industry, America's biggest foreign ally and military partner when it comes to 'ideologically pure missions of liberation' - the UK, and specifically its North Sea oil industry which according to the BBC is in a 'crisis' and according to Robin Allan, chairman of the independent explorers' association Brindex, the industry was close to collapse'. The story is the same as in the shale patch, only in the far colder and stormier North Sea: 'Almost no new projects in the North Sea are profitable with oil below $60 a barrel', he claims. 'Everyone is retreating'. 'It's almost impossible to make money at these oil prices', Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. 'It's a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that's painful for our staff, painful for companies and painful for the country'. 'It's close to collapse. In terms of new investments - there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone'. And to think it was just yesterday that the WSJ telling anyone who believes propaganda that 'Christmas has come early for British consumers'."

Zum Artikel 'Tyler Durden', erschienen auf ZeroHedge (19. Dezember 2015) »

COMSTOCK SUSPENDS OIL DRILLING IN THE EAGLE FORD SHALE

"In response to low oil prices, the Company plans to suspend its oil directed drilling activity in its Eagle Ford shale properties in South and East Texas and in the Tuscaloosa Marine shale in Mississippi.  Comstock has released its rig in the Tuscaloosa Marine shale and will postpone its drilling activity there until oil prices improve. Comstock currently has four operated rigs drilling on its Eagle Ford shale properties. The Company will release two of these rigs in early 2015 and will move the other two rigs to North Louisiana to start up a drilling program on its Haynesville shale natural gas properties. Comstock believes that improved completion technology, including longer laterals, will provide strong returns on drilling projects at current natural gas prices."

Zur Pressemitteilung von Comstock Resources, Inc. (18. Dezember 2014) »

THE BANKING SYSTEM'S EXPOSURE TO OIL

"I think for the banking system as a whole, [regarding] the exposure to oil, I'm not aware of significant issues there. This is the kind of thing that is part of risk management for banking organizations and the kind of thing they look at in stress tests. But the movements in oil prices have been very large and undoubtedly unexpected."

THE FRACKING FALLACY

"We’re setting ourselves up for a major fiasco ... It begins to look as if it’s going to end in tears in the United States ... If natural-gas prices were to follow the scenario that the EIA used in its 2014 annual report, the Texas team forecasts that production from the big four plays would peak in 2020, and decline from then on. By 2030, these plays would be producing only about half as much as in the EIA’s reference case. Even the agency’s most conservative scenarios seem to be higher than the Texas team’s forecasts ... Resolution matters because each play has sweet spots that yield a lot of gas, and large areas where wells are less productive. Companies try to target the sweet spots first, so wells drilled in the future may be less productive than current ones. The EIA’s model so far has assumed that future wells will be at least as productive as past wells in the same county ... EIA’s method amounts to “educated guesswork” ...  Its 2014 budget totalled just $117 million, about the cost of drilling a dozen wells in the Haynesville shale ... There’s going to be a rude awakening for the United States ... For the moment, however, optimism about shale gas reigns — especially in the United States. And that is what worries some energy experts."

Zum Artikel von Mason Inman, erschienen in Nature (3. Dezember 2014) »