US oil production will jump by a quarter by 2014

[scottf200]

US oil production will jump by a quarter by 2014 to its highest level in 26 years, figures suggest.
http://www.bbc.co.uk/news/business-20957073" onclick="window.open(this.href);return false;

Domestic production, which stood at 6.4 million barrels last year, will rise to 7.9 million barrels next year, the highest level since 1988.

"US oil production is rising extraordinarily quickly, entirely because of the application of fracking, [which is] unleashing very significant new resources into the market," Seth Kleinman, global head of energy strategy at Citigroup, told the BBC.
<snip>
But the US will continue to increase oil production for domestic use and to generate revenues from exports.

The US will overtake Saudi Arabia as the world's biggest oil producer "by around 2020", an International Energy Agency (IEA) report predicted at the end of last year.

In fact, global oil production will continue rise, thanks to the discovery of shale oil.
<snip>
The discovery of shale oil means global oil production will not peak in the next 20 years, Mr Birol added.

Not good for our *EV market.

 

[smkettner]

Increasing world demand may still force higher prices.
JMHO

 

[KJD]

If you want to know about oil reserves, you really should read more articles on the oil drum. For example

http://www.theoildrum.com/node/9753" onclick="window.open(this.href);return false;

Another thing that the BBC article left out is that the depletion rate on these fracking wells is about 40% per year. This is way more than a conventional oil well in the middle east. At 40% depletion rate they will have to drill more wells every year to keep production stable, let alone increase the total output. More labor = higher cost per unit.

Oil prices seemed to have bottomed out recently and are trending upward. Gasoline prices often lag oil prices by 6 or 8 weeks, sometimes more.

http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp" onclick="window.open(this.href);return false;

It is very possible that prices in July 2013 will look more like prices of July 2012 or even higher, not lower than today.

 

[evnow]

IEA projections have not been good in the past. Why worry about them now ?

 

[scottf200]

If you want to know about oil reserves, you really should read more articles on the oil drum. For example
http://www.theoildrum.com/node/9753" onclick="window.open(this.href);return false;

Another thing that the BBC article left out is that the depletion rate on these fracking wells is about 40% per year. This is way more than a conventional oil well in the middle east. At 40% depletion rate they will have to drill more wells every year to keep production stable, let alone increase the total output. More labor = higher cost per unit.

Oil prices seemed to have bottomed out recently and are trending upward. Gasoline prices often lag oil prices by 6 or 8 weeks, sometimes more.
http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp" onclick="window.open(this.href);return false;

It is very possible that prices in July 2013 will look more like prices of July 2012 or even higher, not lower than today.

thanks for the additional info.
I also use gasbuddy with the check box for "Show Crude Oil Price"
http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=12" onclick="window.open(this.href);return false;

I was reading the BBC news last night in bed and ran across this article. I've started following the North Dakota Oil Boom as I have friends/relatives in those surrounding states. Some are doing jobs around there.

http://news.nationalgeographic.com/news/energy/2012/11/pictures/121130-north-dakota-oil-boom/" onclick="window.open(this.href);return false;

(Related: "Oil Train Revival: Booming North Dakota Relies on Rail to Deliver Its Crude")

North Dakota, once a sleepy backwater of the petroleum industry, this year surpassed Alaska as the number two oil producer in the United States. The gush of North Dakota crude has helped lift U.S. oil production to its highest level in 14 years, and has the United States on track to regain its spot as the world's top energy producer within five years. (Related: "U.S. to Overtake Saudi Arabia, Russia as World's Top Energy Producer")

It's all due to hydraulic fracturing, or fracking, a new combination of old technologies that has yielded astounding results. Using high-pressure water, sand, and chemicals, the energy industry has been able to force abundant oil and natural gas production from underground shale formations around the United States. (See interactive, "Breaking Fuel From Rock.")

 

[LEAFfan]

If you want to know about oil reserves, you really should read more articles on the oil drum. For example

http://www.theoildrum.com/node/9753" onclick="window.open(this.href);return false;

Another thing that the BBC article left out is that the depletion rate on these fracking wells is about 40% per year. This is way more than a conventional oil well in the middle east. At 40% depletion rate they will have to drill more wells every year to keep production stable, let alone increase the total output. More labor = higher cost per unit.

Oil prices seemed to have bottomed out recently and are trending upward. Gasoline prices often lag oil prices by 6 or 8 weeks, sometimes more.
Oooooo
http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp" onclick="window.open(this.href);return false;

It is very possible that prices in July 2013 will look more like prices of July 2012 or even higher, not lower than today.

According to NPR today, the price of gasoline is heading upwards again and will reach $3.80/gal. which will be less than last year.

 

[LEAFfan]

If you want to know about oil reserves, you really should read more articles on the oil drum. For example
http://www.theoildrum.com/node/9753" onclick="window.open(this.href);return false;

Another thing that the BBC article left out is that the depletion rate on these fracking wells is about 40% per year. This is way more than a conventional oil well in the middle east. At 40% depletion rate they will have to drill more wells every year to keep production stable, let alone increase the total output. More labor = higher cost per unit.

Oil prices seemed to have bottomed out recently and are trending upward. Gasoline prices often lag oil prices by 6 or 8 weeks, sometimes more.
http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp" onclick="window.open(this.href);return false;

It is very possible that prices in July 2013 will look more like prices of July 2012 or even higher, not lower than today.

thanks for the additional info.
I also use gasbuddy with the check box for "Show Crude Oil Price"
http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=12" onclick="window.open(this.href);return false;

I was reading the BBC news last night in bed and ran across this article. I've started following the North Dakota Oil Boom as I have friends/relatives in those surrounding states. Some are doing jobs around there.

N Dakota has the lowest UR in the nation at 4%.

http://news.nationalgeographic.com/news/energy/2012/11/pictures/121130-north-dakota-oil-boom/" onclick="window.open(this.href);return false;

(Related: "Oil Train Revival: Booming North Dakota Relies on Rail to Deliver Its Crude")

North Dakota, once a sleepy backwater of the petroleum industry, this year surpassed Alaska as the number two oil producer in the United States. The gush of North Dakota crude has helped lift U.S. oil production to its highest level in 14 years, and has the United States on track to regain its spot as the world's top energy producer within five years. (Related: "U.S. to Overtake Saudi Arabia, Russia as World's Top Energy Producer")

It's all due to hydraulic fracturing, or fracking, a new combination of old technologies that has yielded astounding results. Using high-pressure water, sand, and chemicals, the energy industry has been able to force abundant oil and natural gas production from underground shale formations around the United States. (See interactive, "Breaking Fuel From Rock.")

 

[RegGuheert]

Not good for our *EV market.

...or our environment. I think most of us here consider burning oil to be bad, but first to get it is even worse.

If you haven't seen the movie "Gashole" yet, I suggest you have a look.

 

[cwerdna]

According to NPR today, the price of gasoline is heading upwards again and will reach $3.80/gal. which will be less than last year.

Yet some places enjoy relatively cheap gas right now, like http://www.mynissanleaf.com/viewtopic.php?p=256919#p256919" onclick="window.open(this.href);return false;.

 

[EdmondLeaf]

I just paid $0.79 per gallon of cng
Regular gas $2.73

 

[DaveEV]

US oil production will jump by a quarter by 2014 to its highest level in 26 years, figures suggest.
...
Not good for our *EV market.

The only way that US oil production will continue to climb is if oil prices stay high and keep on it's upward climb. All the new oil production in recent years is only here because of high oil prices which made it profitable to pull out of the ground - not because there's any new oil underground we didn't already know about.

 

[Herm]

Yet gasoline refineries continue to struggle and gasoline demand drops with the advent of fuel efficient cars in the US

 

[WetEV]

The only way that US oil production will continue to climb is if oil prices stay high and keep on it's upward climb. All the new oil production in recent years is only here because of high oil prices which made it profitable to pull out of the ground - not because there's any new oil underground we didn't already know about.

Deep offshore oil can cost over $100 bbl to produce. Some fairly large fields are known about that just don't make sense to develop at $90/bbl.

 

[JimSouCal]

Just a thought that popped in my curmudgeon head. "Oil" is not "produced". Oil is pumped, lifted, extracted, and depleted. And the consumption of oil also generally uses the atmosphere as a sewer. I know many of us know this, but I cringe when I hear the misnomer of "oil production".

 

[cwerdna]

Just a thought that popped in my curmudgeon head. "Oil" is not "produced". Oil is pumped, lifted, extracted, and depleted. And the consumption of oil also generally uses the atmosphere as a sewer. I know many of us know this, but I cringe when I hear the misnomer of "oil production".

Yep... unfortunately, it seems the industry and agencies that track it use "production" (http://www.eia.gov/energyexplained/index.cfm?page=oil_home#tab2" onclick="window.open(this.href);return false.

As for your other points, I wish more people would get that, esp. those battering ram of death drivers, esp. when I see some of them lined up in dozen+ car long lineups at drive thrus when the lobby of the business is open. :roll:

 

[Stoaty]

...the consumption of oil also generally uses the atmosphere as a sewer.

This is the way the issue should be framed. Words make a difference. Much worse than "oil production" is "clean coal"--an oxymoron that has found its way into too many politicians speeches. Coal is actually one of the dirtiest, most polluting methods of generating electricity known to man:

--mountain top removal sometimes used to get the coal, with pollutants in nearby streams and the area wrecked
--numerous pollutants released from burning the coal, including the very neurotoxic mercury (which some limits have finally been set on)
--coal ash stored in big toxic ponds
--black lung disease for the miners, plus the risk of death from collapses or explosions (increased by mining companies that don't follow proper safety protocols)

 

[tmac]

Just a thought that popped in my curmudgeon head. "Oil" is not "produced". Oil is pumped, lifted, extracted, and depleted. And the consumption of oil also generally uses the atmosphere as a sewer. I know many of us know this, but I cringe when I hear the misnomer of "oil production".

Great distinction: words matter.

Dr Al Bartlett UC boulder notes this rush to extract refine burn oil can be summed up 3 words:

'Strength through exhaustion'

One can never be energy independent with a FF based resource; one is temporarily ahead of the curve and it feels like you are independent (like USA in 1972 before OPEC)


Cheers
Tom

 

[EdmondLeaf]

Largest Oklahoma Earthquake Linked to Oil Extraction Wastewater
http://www.livescience.com/28221-wastewater-injection-caused-oklahoma-earthquake.html
Natural Gas Lobbyist Takes on Obama on Fracking
http://www.bloomberg.com/news/2013-...st-takes-on-obama-on-fracking.html?cmpid=yhoo

 

[tmac]

Largest Oklahoma Earthquake Linked to Oil Extraction Wastewater
http://www.livescience.com/28221-wastewater-injection-caused-oklahoma-earthquake.html
Natural Gas Lobbyist Takes on Obama on Fracking
http://www.bloomberg.com/news/2013-...st-takes-on-obama-on-fracking.html?cmpid=yhoo

Yeah I saw that

You should tell Texas congressman about that

http://news.yahoo.com/twitter-destroys-pro-oil-senator-best-thing-earth-191453282.html" onclick="window.open(this.href);return false;

Rep. Steve Stockman of Texas is excited that the state of Utah's Division of Oil, Gas, and Mining is hosting a contest for Earth Day asking kids to make a poster highlighting the importance of drilling. "The best thing about the Earth," Stockman tweeted, "is if you poke holes in it oil and gas come out."

 

[MarkBC]

Just a thought that popped in my curmudgeon head. "Oil" is not "produced". Oil is pumped, lifted, extracted, and depleted. And the consumption of oil also generally uses the atmosphere as a sewer. I know many of us know this, but I cringe when I hear the misnomer of "oil production".

It is the oil industry itself that uses this `production`term, and they know full well that it isn`t `produced`. It`s just a term they use. The problem is, economists also use the term `produce`in their little supply / demand charts. They look at the oil industry that supposedly "produces" oil, and then look at their supply / demand charts in which supply is "produced", and then the light bulb goes on in their heads and they say, `Wow, look. Oil is produced. The oil industry says so. That fits so perfectly into our charts. Oil will be produced forever. The supply / demand chart says so.`

And of course our politicians buy into this nonsense because they have no understanding otherwise.