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Page added on October 7, 2015
Oil Depletion Likely Without Technology
Without the latest technologies to increase production, there is a good chance that Iranian oilfields will be exhausted in the near future, says the deputy for technology and international affairs at the Research Institute of Petroleum Industry.
“Even if the country focuses all its energy on completing the value chain in oil and gas industries, without new drilling techniques to exploit our reserve of nearly 650 billion barrels of crude oil, we will still fail to harvest the maximum capacity of oilfields,” Amir Abbas Hosseini told ILNA.
The official had previously announced that the institute is seeking a strategic mechanism to raise oil extraction rate by nearly 11% and that the current extraction rate is a long way from the target rate of 35%, because extraction procedures are lacking know-how.
“Failing to do so would lead to a production decline through the second half of the operational oilfields’ lifecycle and, eventually, their demise,” he said.
Stressing that Iran’s return to its previous standing in oil trade does not interfere with completing the value chain, Hosseini said lack of a strategic plan for enhancing oil recovery has put off optimum exploitation of the fields.
“Other countries with oilfields similar to those in Iran have made enhanced oil recovery and boosting exports their number one priority,” he said. Iran holds the fourth-largest proven crude oil reserves and more than one-third of OPEC’s reserves. However, oil and trade embargoes against Tehran have led to constraints in crude extraction technologies in the past few years.
A report released by market research firm Lux Research says advanced oil drilling technologies could increase the world’s oil supplies sixfold in the coming years to 10.2 trillion barrels.
59 Comments on "Oil Depletion Likely Without Technology"
apneaman on Wed, 7th Oct 2015 2:21 pm
BRIEF-Brazil oil and gas auction sells 37 of 266 oil blocks
http://www.reuters.com/article/2015/10/07/idUSL1N1271JJ20151007
BC on Wed, 7th Oct 2015 2:22 pm
marmico, I know this is going to be tough for you to concede and internalize, so take a few deep breaths. We’re all in this together, brother. 🙂
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23KT
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23KX
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23Ld
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23La
Real “health” care (HC, aka “dis-ease” or “illth” care) as a share of real final sales (RFS) is nearly 7 times that of household gasoline and energy (G&E) consumption, whereas HC spending is growing at nearly 6% YoY real to 3.5% for G&E.
Take the differential rates as a share of RFS, and HC spending makes G&S spending look sick, i.e., growth of HC spending more than offsets any savings from G&S as a share of household spending or RFS.
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23Lh
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23Li
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=23Lm
https://app.box.com/s/ys8ijadj4b57nb95ka0b3ilph38ga7fm
As a share of final sales and the differential growth rates, oil still ain’t “cheap”.
By any other name, the US economy has rolled over into recession, brother.
BC on Wed, 7th Oct 2015 2:29 pm
@Hello: Did you realize that debt forgiveness is practices right now by means of inflation?
But it’s strange that you would bring up the FED and money printing and debt forgiveness, when we were actually talking about only one simple thing. A solid working economy at $300 oil.
Could it be that you’re at a loss of arguments and in need of obfuscations?
Or are my “obfuscations” the perception of an “average housewife?” If so, you have more important things to attend to, I’m sure.
$300 oil would put US oil consumption at 12% of GDP and gasoline at $7-$8/gal. A “solid working economy”, my backside.
😀 😀 😀 😀 😀 😀 😀 😀
BC on Wed, 7th Oct 2015 2:39 pm
@Hello: Did you realize that debt forgiveness is practices right now by means of inflation?
Hello?! We’re facing deflation.
Debt-money growth less bank cash assets/reserves is currently growing at a rate sufficient only to service existing debt not service a net increase in additional debt.
Look at the EZ, in spite of headline growth of 4% for broad money, private lending/money growth is barely 1% and showing no signs of accelerating. The ECB printing is ending up in bank cash holdings or sovereign debt holdings on the banks’ balance sheets, not in growth of private lending and thus in bank deposits less cash reserves.
Moreover, credit spreads are widening even as CPI decelerates, resulting in the real costs of debt service at among the highest levels since the high credit risk during 2008-09 and during the Great Depression.
So, no, “inflation” in the West is not currently deflating (or inflating away) the current or future constant value of debt; far from it.
Hello on Wed, 7th Oct 2015 2:48 pm
BC:
Thank you for your reply.
I read it and I will think about it.
Unfortunately I have to go now, but I’m certain we will meet again.
rockman on Wed, 7th Oct 2015 3:26 pm
Hello – Sorry for being a smartass…I didn’t really think English was your second language because it seemed gooder then mine. LOL.
And yes: oil prices did fall considerably in the 80’s after the price boom of the late 70’s. But if you look at the global economy during that period it was clearly due to a severe global recession that many at that time most felt was a direct result of high oil prices. Or, as you put it, a very sudden increase in the price.
Davy on Wed, 7th Oct 2015 3:59 pm
I love it BC. Fight fire with Fire. Mad Marm understand Freddy charts. How can he argue a Freddy chart. Ye ha, get em cowboy.
apneaman on Wed, 7th Oct 2015 5:57 pm
U.S. oil output on brink of ‘dramatic’ decline, executive says
http://www.reuters.com/article/2015/10/06/us-oil-outlook-usa-idUSKCN0S021Y20151006
BC on Wed, 7th Oct 2015 7:01 pm
@Davy 😀