by Tanada » Mon 18 Feb 2013, 23:38:45
$this->bbcode_second_pass_quote('Buddy_J', 'Y')ou sound pretty heavily invested in this ASPO thing. So they aren't doing a particularly good job sounding the alarm, according to you, how hard do you think is reasonable to sound the alarm? Screaming about the wolf coming on a daily basis does tend to have a putting off tendency, but sitting behind a strict peak oil definition in a country not only past its own peak but reversing it faster than any other country on the planet can be one hell of a hard sell. Maybe they are working harder than ever, selling some version to someone, and we just can't see it yet?
Many people have not caught onto it yet, but only peak oil makes it viable for the USA to be increasing production.
The simple fact of the matter is back in the 1980's when the USA got serious about developing syncrude from coal and from kerogen rich shale (oil shale the media calls it) Saudi Arabia bided their time. They waited until a large sum of money had been invested in hundreds of projects based on Oil selling for $25.00 or more, and then they flooded the world market with cheap crude oil, dropping the price to $10.00 bbl. A lot of small operators went bankrupt and a lot of big ones took a major loss. On top of the synfuel debacle every drilling project for conventional oil had to be reconsidered based on the new $10.00 benchmark and hundreds of thousands of oil field workers were let go over the next two years.
Today Saudi Arabia and most everyone else is already pumping near their top sustainable rate, they can no longer flood the market with cheap crude to gain control of the market. Whatever increases of supply on the world market have been created by less demand and more supply in the USA have been absorbed by the growing demand elsewhere. Very little actual cutting has been done by anyone because oil is close to $100.00 and staying in that range, more wealth than OPEC ever dreamed possible a decade ago is flooding into the Middle East.
While the USA has made remarkable gains in supply from tight oil it still has a long way to go to get back up to 10 M bbl/d of the 1970 peak, and even though demand is lower than it was five years ago the USA is still importing lots of oil from OPEC as well as Canada and Mexico.