by Maddog78 » Sun 14 Sep 2008, 14:54:54
$this->bbcode_second_pass_quote('ROCKMAN', 'I')’ll offer a perspective from the oil industry side of PO. Some of the small points might be a surprise. Most important, despite the statements from some of the industry “leaders” that seem contrary to what most here believe, PO is a very old subject in the oil patch. As the Dude and others already know, we’ve never called it “PO”….it was typically referred to as the “reserve replacement” issue. And it was never really discussed with any sense of alarm or panic. It was merely an adjustment in business plan for many companies especially newly forming ones. From the late 80’s through today perhaps as much effort and capital has been expended towards reserve acquisition through purchase (from individual wells all the way through corporate acquisitions). A very large percentage of companies (mostly public) were formed with the intent to acquire older fields from the bigger companies and redevelop opportunities that were considered to small for the current owners. Domestic exploration programs were still developed but were generally small in scale compared to 20 or 30 years prior. Growth of these new operations was based mostly on reworking old fields. There were some surprises along the way such as the Deep Water GOM trend and the recent rapid development of unconventional NG. But they players in those trends still represent a minority of oil/gas companies (although their capital expenditures are huge overall).
I’ve been a petroleum geologist for 33 years and until a few months ago, after discovering “Twilight in the Desert”, TOD and this website I didn’t really know there was any serious public discussion of PO going on. Even today there are no conversations between my coworkers about PO nor are they generally aware of discussions as we have here or elsewhere. Lots of different backgrounds bouncing in and out of our conversations but you might have noticed not to many from the E&P side of the business. It’s not so much a lack of concern over the consequencies of PO but maybe just simply the inevitable nature of the situation. Excluding the cheer leading CEO’s of corporate oil, look at who’s leading the public conversation: economists and a few politicians. Perhaps this unalarmed view of the future is also due in part to the repeated boom/bust cycles most of us old timers have lived through. Times for us are great right now. Then they’ll turn bad for a while and then good again, etc. I really don’t have any other explanation. Over the last 30+ years, prior to joining this merry band of brothers/sisters, I had exactly one conversation regarding “PO” per se. It was with my nephew about 20 years ago and dealt with the PO world his daughters would have to deal with by the time they were adults. At the time I just made a wild guess of 2020 for no particular reason.
The thoughtful conversations I see here do give me some hope for us to rationally deal with PO. But that only works as long as I ignore the probability that “we” are the great minority with little chance to change public attitudes in a constructive manner anytime soon.
Good post, ROCKMAN. I'm a consulting drilling engineer. Have been for almost 30 yrs. now. The actual term "Peak Oil" is never used amongst my colleagues, just as you described.
I would also agree that the boom and bust cycles we've lived through has had the effect you've described. It was very difficult to make a living in this business in the busts of '86 and '98.
Now times are good and it's "make hay while the sun shines "