Oil on the boil, again

…We know that hydrocarbons are finite and that oil can only be burnt once. But the oil supply curve is more elastic than peak oil theorists maintain.

The world as a whole does not peak and decline like individual fields: we face a long undulating plateau in supply as technology and oil price squeeze more oil out of reservoirs.

There are ample geological reserves but extracting hydrocarbons is complicated by resource nationalism.

The stalemate over developing Iraq shows the problem: 80 per cent of conventional reserves are held by national oil companies that are not agile or efficient.

Resource nationalism limits access: Arabia, Mexico and Iraq (so far) are closed – except for services. Economic returns are low and title problematic from Russia to Libya – this jeopardises potential oil recovery, as poor practices often result.

Sunday Business Post