What is Peak oil?
"The term Peak Oil refers to the maximum rate of the production of oil in any area under consideration, recognising that it is a finite natural resource, subject to depletion."
Submitted by Kjell Aleklett on Sun, 2013-11-10 14:49.
A travel report by Kjell Aleklett, Uppsala University and University of Texas at Austin
Production of “oil” from the Eagle Ford Shale has now passed one million barrels per day (1 barrel is 159 litres). During the next three years we can expect to see production increase further. Every month, all oil and gas producers in Texas (including producers of conventional oil and gas) must report their production to the Railroad Commission of Texas, RRC.
Submitted by Kjell Aleklett on Mon, 2013-09-16 12:32.
The fact that they have now begun to produce oil from Kashagan and that we know the project costs are $48 billion gives me reason to look at a report that Goldman Sachs presented in March 2012, ”360 projects to change the world”. They have studied how much oil and gas the various projects are planned to deliver and the very interesting information on what oil price is needed for the projects to be profitable. The fact that all new projects need financiers means that new projects are well documented. This also makes it possible to do this analysis. The analysis can be seen as one of optimal possible new future oil production.
Submitted by Kjell Aleklett on Wed, 2013-09-11 21:21.
Network Oil & Gas (NOG) was formed in Sweden 12 years ago. It is a forum for training, exchange of experience and debate on issues that affect the use and significance of fossil fuels. During a year, NOG aims to organise approximately six symposia. Last Monday’s symposium was titled, “Perspective on future oil use” and was the 69th to be held. I was most recently invited to deliver a lecture for NOG in 2004 but as early as 2001 I was invited to present at one of their symposia that they had organised to examine the extent of public interest in issues regarding oil and gas. Last spring it was discussed that I would be invited to present a lecture on my book “Peeking at Peak Oil”. During the summer, Staffan Riben, the chairperson for the program committee and the moderator of the symposium read my book.
Submitted by Kjell Aleklett on Tue, 2013-09-03 17:33.
Nobody denies that there is a connection between economic growth and oil consumption. The clearest signal came in 2008-9 when the world economy crashed at the same time as oil production sank dramatically. If one is to describe this in a little more detail then it is not oil production itself that is decisive rather than that part of oil production that passes through the world’s refineries and then becomes transport fuel. Transportation of raw materials and components for manufacturing of goods, transportation of products to retail outlets and, finally, transport of customers to those outlets is the chain that gives economic growth. Therefore, it can be interesting to study what passes through refineries, where it is, and what refinery products are produced.
Submitted by Kjell Aleklett on Sun, 2013-09-01 12:50.
The U.S. Geological Survey has, in collaboration with the U.S. Fish and Wildlife Service, issued a report with the title, “Hydraulic Fracturing Fluids Likely Harmed Threatened Kentucky Fish Species” (read the report). They assert:
Hydraulic fracturing fluids are believed to be the cause of the widespread death or distress of aquatic species in Kentucky's Acorn Fork, after spilling from nearby natural gas well sites. These findings are the result of a joint study by the U.S. Geological Survey and the U.S. Fish and Wildlife Service. The Acorn Fork, a small Appalachian creek, is habitat for the federally threatened Blackside dace, a small colorful minnow.
Submitted by Kjell Aleklett on Tue, 2013-08-27 14:36.
The American shale gas revolution began in the area that goes under the name of the Barnett Shale. On the map above you can see active permits and wells. The Railroad Commission of Texas (RRA) is the organization that holds responsibility for the official oil- and gas-statistics in Texas. On 22 August 2013 the RRA published the latest statistics on the Barnett Shale (see report). The official name of the area that lies from southwest to northwest of Dallas is not the Barnett Shale but, rather, “The Newark, East Field”. According to the RAA the area is 13,000 square kilometres in size and in Sweden the area of Uppland is a comparable size, 12,676 square kilometres.
Comments on Wood Mackenzie’s report “China on Track to spend US$500bn on Crude Oil Imports by 2020, Surpassing US Import RequireSubmitted by Kjell Aleklett on Fri, 2013-08-23 18:06.
On 20 August Wood Mackenzie (WoodMac) released a report on China and the USA’s future imports of oil. WoodMac regards itself as one of the world’s leading companies producing energy analyses. The title of the report is “Heading in Opposite Directions: China and US Reliance on Oil”, but I chose to use the report’s subtitle as part of this blog, “China on Track to spend US$500bn on Crude Oil Imports by 2020, Surpassing US Import Requirements”.
In recent days WoodMac’s report has been cited by a large number of news outlets around the world and in Sweden. As an example I can cite Reuters’ article “China oil imports to overtake U.S. by 2017”. According to WoodMac, China will surpass the USA as the world’s largest importer of oil in 2017 and by 2020 it is estimated to be importing 9.2 Mb/d per day. Per year this would amount to 3.36 billion barrels of oil.
Submitted by Kjell Aleklett on Tue, 2013-08-20 06:19.
Southwest of Texas’ capital city Austin and towards the Mexican border there is a large area of shale called the "Eagle Ford Shale”, EFS. For those interested I can mention that there is a good website “Eagle Ford Shale” where one can find all sorts of information on Eagle Ford. Figures in this report are from that website.
Eagle Ford is considered one of world’s largest oil- and gas-investments in terms of costs. During 2013 it is estimated that the volume of investment will be on the order of $30 billion. They calculate that all the investments in EFS have in 2012 generated over 116,000 jobs just in the provinces covering EFS geographically and many more jobs in peripheral areas. In purely economic terms the investments have meant twice as much for the region.
The thing that distinguishes shale oil production is that it involves drilling of many wells that, in comparison with the traditional wells of conventional oilfields, give a relatively low production.
Submitted by Kjell Aleklett on Sat, 2013-08-17 10:04.
Last Sunday The Guardian newspaper published an article illustrating one of the negatives of fracking, "Fracking boom sucks away precious water from beneath the ground, leaving cattle dead, farms bone-dry and people thirsty". The title of the article was “A Texan tragedy: ample oil, no water”. It is good that they are beginning to realise that fracking has its problems.
As an introduction to the article online, they show a video with the following explanatory text, "In Mertzon and Barnhart in western Texas, the worst drought in two generations is choking the water supply. Water shortages are raising tensions between locals and the fracking industry. Drilling for shale gas uses up to 8m gallons of water each time a well is fracked" (8 million gallons is the same as 30 million litres, or 30 thousand cubic metres).
Submitted by Kjell Aleklett on Tue, 2013-08-06 19:09.
The title, “New data show record growth in U.S. crude oil reserves” might lead most readers to believe that fantastic developments are afoot in the USA. However, if we study the report in detail we can see that large question marks exist over future oil production. The US Energy Information Agency, EIA, has now reported changes in proven reserves during 2011. Recently I discussed how different types of oil reserves are reported and I can suggest that readers might like to look at that blog again. For proven reserves the EIA states the following criteria: “Proved reserves are those volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions”.