<Smart Metering and Smarter Metering The Oil Drum DrumBeat: November 3, 2006>

97 comments on Because Matt Deserves His Own Open Thread....eh?

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Euan Mearns on November 3, 2006 - 8:30am Permalink | Subthread | Parent | Comments top
Why would you want to take the whole of the North Sea when production history has been controlled by geo-political-economic  issues - just like KSA.

Saudi Arabia is not all of the Arabian Gulf basin.  It sounds like some may want to pick and choose data to prove a technique to prove a point?

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Leanan on November 3, 2006 - 8:43am Permalink | Subthread | Parent | Comments top
I don't want to speak for him, but I gather he thinks Norway and the UK are geologically two straws stuck in the opposite ends of the same glass.  
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westexas on November 3, 2006 - 8:51am Permalink | Subthread | Parent | Comments top
My personal rule of thumb is that HL works best on major producing regions that have produced serious amounts of oil, say 2 mbpd or so, for about two decades.  I think that the early portion of the UK data set was just too immature for a reliable projection, and there was also the question of how the Piper Alpha accident affected the UK data.

The fact remains that the North Sea and the Lower 48 peaked at the same point.   Today, the world was where the North Sea and the Lower 48 were at when they started declining, and the world is showing declining crude + condensate (C+C) production (EIA).  

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Euan Mearns on November 3, 2006 - 10:29am Permalink | Subthread | Parent | Comments top
To Leanan and Westexas, HL is all about production, reservoir potential, and decline - which in the case of the UK north sea was significantly influenced by the oil price crash of 1986 - leading to political-economic controls of exploration, investment etc - that is what controls the UK Hubbert - those are facts. And a long history of political - economic control has also been evident in KSA.  I am going to work on this over the next couple of weeks for the definitive post - doing each country on its own and combined.

Matt - still hopeful you may call by with comments.

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westexas on November 3, 2006 - 11:34am Permalink | Subthread | Parent | Comments top
To Leanan and Westexas, HL is all about production, reservoir potential, and decline - which in the case of the UK north sea was significantly influenced by the oil price crash of 1986 - leading to political-economic controls of exploration, investment etc - that is what controls the UK Hubbert - those are facts. And a long history of political - economic control has also been evident in KSA.

These were all factors in Texas production, which is why I think that Texas peaked later (as a percentage of Qt) than did the overall Lower 48.  And as I have noted, KSA is now at the same point that Texas started declining, as a percentage of Qt, and KSA--like Texas--is showing lower production even as drilling activity picked up.

Also, Texas, as one would expect, had a sharper post-peak decline rate than did the overall Lower 48.  I expect to see a similar pattern regarding KSA and the world, probably compounded by the fact that KSA is so dependent on their largest oil field.

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Hothgor on November 3, 2006 - 11:41am Permalink | Subthread | Parent | Comments top
It's a vicious cycle we are in.  In order to increase production we have to drill, the doomers say.  Then increasing drilling is a sign of peaking.  Its a perfect circle of logic the ILL doomer develops :P
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peakearl on November 3, 2006 - 12:43pm Permalink | Subthread | Parent | Comments top
Don't be dumb. It is increased drilling without corresponding production increases we are talking about (which appears to be happening in Saudi Arabia right now but we need more time to tell). Prior to the peak, increased drilling increases production. Afterwards, it only slows the decline. This has been gone over a multitude of times. Look at some data.
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westexas on November 3, 2006 - 1:10pm Permalink | Subthread | Parent | Comments top
It's a vicious cycle we are in.  In order to increase production we have to drill, the doomers say.  Then increasing drilling is a sign of peaking.  Its a perfect circle of logic the ILL doomer develops :P

Hothgor,

I have frequently cited the example of Texas, where, after oil prices went up by 1,000% from trough to peak in the Seventies, the industry responded with the biggest drilling boom in history, which increased the number of producing wells by 14%, which resulted in a 30% drop in production.

Historically, past the 50% of Qt mark in a given region, increased drilling, while it may be profitable, has not led to increasing production.

Again, the basic premise is that we find the big fields first, whether it is Texas, the Lower 48, Total US,  Russia, North Sea, or KSA.   The smaller fields that we find past the 50% of Qt mark have historically not been able to make up for the declines of the old, larger fields.  That is why the current world C+C decline, at the same mathematical point at which the Lower 48 and the North Sea started declining, combined with the near certain decline/crash of the four current super giant oil fields is such a compelling argument for the "Yes, we have peaked" position.

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ThatsItImout on November 4, 2006 - 5:35am Permalink | Subthread | Parent | Comments top

Westexas, how ya' been?

Even more down to the "pocketbook" issues, for those who use the low price now as an indicator that "peak cannot be close at hand, take a look at the histroy of U.S. oil prices.
http://en.wikipedia.org/wiki/Image:Oil_Prices_1861_2006.jpg

Note that in real dollars, on the EVE OF U.S. PEAK, our oil prices dropped to an inflation adjusted level not seen since the dark heart of the Great Depression, and not seen before that since the birth of industry!  It's astounding to think about, the ABSOLUTE LOWEST PRICES were within monthes of what we now know to have been the ABSOLUTE PEAK of American production.  The roads were full of big block power rockets, the lakes were full of sexy fast boats, the air was full of the jet set, oil was as CHEAP as it had been in a lifetime, and peak was within monthes.

We were then, as we are now, RUNNING BLIND.  For the public at large, there was, and will be NO WARNING, at least none we will listen to.

Roger Conner  known to you as ThatsItImout

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97 comments on Because Matt Deserves His Own Open Thread....eh?

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