by MonteQuest » Fri 02 Feb 2007, 01:53:37
$this->bbcode_second_pass_quote('oil_rocks', 'i') predict a 0.25% decline rate, which gives us 200 years to reach 50%. The rationale being that as field start drying up, there will be an enormous, monumemntal effort to find new deposits and drill deeper than anyone has ever drilled before.
Well, the US experienced a 2% decline rate in spite of mega drilling. Drilling more does not help.
Deeper? Ever hear of the oil window?
The oil window refers to the depth at which the process of turning kerogen into oil can occur – from 6,000-7,000 ft. to 13,000-15,000 ft. At greater depths you would not get oil ... but gas.
Let's look at Alaska and ANWR.
95% Probability 5.7 bbls = .5 mbpd
Mean (Expected)10.3 bbls = .9 mbpd
5% Probability 16.0 bbls = 1.9 mbpd
Seven to 12 years are estimated to be required from the time of approval to explore and develop ANWR to the first production of oil.
From first production to peak will take 3 to 4 more years where the production rate peaks at .9 million barrels per day.
By 2025, the US is projected to consume 30 mbpd at a 1.7% annual growth rate.
In 2025, .9 mbpd is 20% of domestic production but only 3% of US demand.
30 mbpd divided by 24 hours = 1.25mbph
9 mbpd is 72% of one daily hour US demand
Conclusion: ANWR would power the US for 43 minutes/day, the rest would have to be imported.
This is what an enormous monumental effort would produce.
And even if we could produce more, the Alaskan pipeline only holds 2mbpd and is half full with Prudhoe Bay oil.
A Saudi saying, "My father rode a camel. I drive a car. My son flies a jet-plane. His son will ride a camel."