Another Peak Oil Cufuffle Part VI
We thank KiltedGreen for his comments and thought provoking questions.
We temporarily stopped the expensive process of looking for crude oil when we had already physically established more than 2 trillion barrels of reserves.
This is why discovery rates have been steadily dropping since 1964. When we've used another 1 trillion barrels, maybe big oil will start looking for more accessible oil.
Big oil stopped building refineries supossedly because of the investment risk, costs and NIMBY's (Not In My Backyard Types).
These are all nice excuses for what could be called the best orchestrated production squeeze of all time (at the refining level).
For a case in point, look at Shell's mysterious Bakersfield refinery shutdown as exposed by the LA Times.
Also an internal Chevron memo states; "A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins."
There is an obvious inconsistency between the peak oil theory and the behaviour of automobile manufacturers and oil companies over the last 20 years.
That being over the last 20 years, automotive and petroleum corporations have invested very little in research and development of alternative energy.
Some would say global consolidation has partially blocked the development and integration of renewable clean technologies.
Knowing full well that "peak oil" was "soon" to be upon us... Big oil minimized R&D, exploration and refining capacity? Doesn't that sound like forward thinking and good planning to you?
This would make Big Oil & Automotive either the biggest liars, idiots or both, in history. Based on past performance, they are anything but. Remember, its all about the money and to find out who profits, always follow the money.
The Wall Street Journal has noted the economic conundrum: The price of oil remains high only because the cost of oil remains so low.
We remain dependent on oil from the Mideast NOT because the planet is running out of buried hydrocarbons, but because extracting oil from other sources is more expensive and there is investment risk in the technology and infrastructure to do so.
In the Mideast, current lifting costs run $1 to $2.50 per barrel; lifting costs in Iraq probably are closer to 50 cents. So it costs under $5 per barrel to pump oil out from under the Middle East, and about $15 to melt it out of tar sands in Alberta.
Capital costs keep falling, because the cost of a tar sand refinery depends on technology, and technology costs always fall.
In the meantime, much of the earth's most accessible oil lies under land controlled by feudal theocracies, kleptocrats, and fanatics.
Given the current situation, where would you extract it from? More to come in Part VII. Internal Mobil, Texaco and Chevron Memo's - Effort to REDUCE refining capacity
Another Peak Oil Cufuffle
Another Peak Oil Cufuffle Part II
Another Peak Oil Cufuffle Part III
Another Peak Oil Cufuffle Part IV
Another Peak Oil Cufuffle Part V
Another Peak Oil Cufuffle Part VI
Another Peak Oil Cufuffle Part VII
Another Peak Oil Cufuffle Epilogue
We temporarily stopped the expensive process of looking for crude oil when we had already physically established more than 2 trillion barrels of reserves.
This is why discovery rates have been steadily dropping since 1964. When we've used another 1 trillion barrels, maybe big oil will start looking for more accessible oil.
Big oil stopped building refineries supossedly because of the investment risk, costs and NIMBY's (Not In My Backyard Types).
These are all nice excuses for what could be called the best orchestrated production squeeze of all time (at the refining level).
For a case in point, look at Shell's mysterious Bakersfield refinery shutdown as exposed by the LA Times.
Also an internal Chevron memo states; "A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins."
There is an obvious inconsistency between the peak oil theory and the behaviour of automobile manufacturers and oil companies over the last 20 years.
That being over the last 20 years, automotive and petroleum corporations have invested very little in research and development of alternative energy.
Some would say global consolidation has partially blocked the development and integration of renewable clean technologies.
Knowing full well that "peak oil" was "soon" to be upon us... Big oil minimized R&D, exploration and refining capacity? Doesn't that sound like forward thinking and good planning to you?
This would make Big Oil & Automotive either the biggest liars, idiots or both, in history. Based on past performance, they are anything but. Remember, its all about the money and to find out who profits, always follow the money.
The Wall Street Journal has noted the economic conundrum: The price of oil remains high only because the cost of oil remains so low.
We remain dependent on oil from the Mideast NOT because the planet is running out of buried hydrocarbons, but because extracting oil from other sources is more expensive and there is investment risk in the technology and infrastructure to do so.
In the Mideast, current lifting costs run $1 to $2.50 per barrel; lifting costs in Iraq probably are closer to 50 cents. So it costs under $5 per barrel to pump oil out from under the Middle East, and about $15 to melt it out of tar sands in Alberta.
Capital costs keep falling, because the cost of a tar sand refinery depends on technology, and technology costs always fall.
In the meantime, much of the earth's most accessible oil lies under land controlled by feudal theocracies, kleptocrats, and fanatics.
Given the current situation, where would you extract it from? More to come in Part VII. Internal Mobil, Texaco and Chevron Memo's - Effort to REDUCE refining capacity
Another Peak Oil Cufuffle
Another Peak Oil Cufuffle Part II
Another Peak Oil Cufuffle Part III
Another Peak Oil Cufuffle Part IV
Another Peak Oil Cufuffle Part V
Another Peak Oil Cufuffle Part VI
Another Peak Oil Cufuffle Part VII
Another Peak Oil Cufuffle Epilogue
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