After putting up with a number of pretty ugly responses in the Saudi thread, I want to share part of one of the e-mails that I got yesterday. The attacks directed at me were based on 2 different things: 1). What I posted is common knowledge and not news; and 2). I should not have been surprised about the data since I work for an oil company and post on TOD.

Regarding 2, nobody is an expert on the entire oil industry. During my career I have worked in Research and Development and Downstream. Someone asked what Downstream means, and this is refining - taking the oil and turning it into gasoline. You can spend a career becoming an expert in 1 very small area of refining, such as how to run a catalytic cracker. Upstream, where they take oil and gas from the ground, is an entirely different area. I don't personally know anyone that is an expert in both Downstream and Upstream. I am sure they exist, but most people spend their career in one area or the other. I am crossing over from Downstream to Upstream with my move to Scotland, but I know that I will be on a steep learning curve. And despite the claim of one of my attackers, I have never presented myself as an Upstream expert. That will change over time, but right now I am trying to learn, which is what TOD is for.

Regarding 1 above, many of the responses were of the nature "Those numbers can't be right." Of course the numbers were right, but based on this sort of reaction, it was definitely worth sharing the information because a lot of people didn't know. Here is the part of the e-mail I want to share:

Robert,

I read your "A Different Approach" post and found it interesting for two reasons (1) the questions you raise and (2) the reaction to the community.

I am relatively new to this topic (been reading various Internet sites since June).  I've read Twilight in the Dessert and a Beyond Oil.  I've been reading TOD daily for the last 2-3 months.  I find posts like this frustrating because many people imply that I should know about "reserve growth" and how it relates to the topic of peak oil, as if I am an expert.

Remember, there are a lot of new people on this site. Reserves growth was news to this person, as it was news to others. (Despite what some of my other critics said, it wasn't the reserves growth that was surprising to me; it was the difference between how far we drew our reserves down versus how much we produced).

In conclusion, I would call for a little more civility. One of the editors expressed concern to me over some of the reactions to my post. I was also quite surprised at the rancor it unleashed within some. But such reactions will drive some viewers from here, and it will cause others not to post. So, think about that, and ask yourself if you would say such things to someone sitting across from you at a table.

Cheers, Robert

The psychology of Peak Oil awareness and other "deep" subjects like religion and politics is a fascinating study in itself. People often lash out at the messenger when confronted with data that conflicts with their internal worldview. Dont take any of that personally - you have hundreds of people like me that read yours posts with a lot of attention - we always learn something.

BTW - which mountain were you up on? :-)

Francois

Francois,

I am in the mountains directly west of Colorado Springs, near Pike's Peak. On Saturday, we climbed Mt. Arthur, and I hope my pictures turn out well. I am flying back to Montana this evening, and I should have a pair of posts in the queue right after that. I think my conversations over the past few days with my host will spark some discussion here.

I second Francois' post re data on certain subjects.
My brother has relatives in Chipita Park and I love hiking around Green Mountain Falls.  Were you close to this location?
My host says we are about 10 miles from those locations as the crow flies.
Beautiful country...enjoy!!
"People often lash out at the messenger when confronted with data that conflicts with their internal worldview."

It might be instructive to take a look at the usenet newsgroup "sci.physics" some time.  It once had a reasonable signal-to-noise ratio and was often informative.  Over time, it attracted a great number of quirky posters and some real lunatics--to the point where it often seems to contain little more than bizarre theories and flame wars.  And that's over such controversies as relativity and quantum mechanics.  If (when?) people become widely and deeply concerned about peak oil--so that it really threatens their worldview--I'm afraid EVERYTHING we've seen so far on TOD will seem quaintly genteel and polite.

Mark Folsom


This may be an egaltarian view, but if/when Peak Oil becomes mainstream, the only real solution will be to cut off membership at somepoint, with new viewers only allowed a read only role at the site.  Kitco had to do this with their old gold forum.  Either that or admins will have to resort to heavy moderation.

Just my opinion - from 14+ years on the net.

Garth

Or we'll have to go the dKos/Slashdot "community rating" route.
Or you hire a couple female mods to slap the taste out the mouth of anybody who causes trouble!
You know, whereever you stand on these issues, a documentary on the psychological responses people have to this stuff and the archetypes attracted to this info would be quite fascinating.
Incidentally, I certainly don't want to imply that all of the disagreements were unmerited, nor that a majority of the disagreements were ugly. Most were not, and I got many encouraging responses. It is just that the ugly ones are the ones that stick with you.

I strongly support the challenging of arguments. By the same token, I strongly condemn attacking posters. I have no problem defending arguments. I should not be required to defend myself as a person though.

RR - I just read some of yesterday's brouhaha this morning, and I found your post very interesting.  The attacks were unwarranted.  You make good, valid points.  Thank you.
RR, I'm also shocked by the vituperative attacks against you, WT and Dave. Maybe there is something to the theory of Jeffrey's of paid Trolls.
  The real problem is that the information presented on TOD challenges people's world view. With a profound shortage of cheap, available energy "free market capitalism" founders by the roadside like a car thats out of gas. We're all going to be more impoverished by the standards of 20th Century materialism. Thats not the same as being made poor-we can change a lot by changing the Ugly American view of wealth. This view has been foisted on us by the media in the control of the corporations, and they cannot see how they can profit and remain in control if we follow the obvious plan of WT's to Economise, Localise, Produce.
  When somebody challenges a person's worldview they commonly attack the person challenging the view even if they are correct. I'm 55 and remember the hatefulness of the establishment attacks on Dr. Martin Luther King, or anyone who advocated peace. Look at how they still trash-mouth Jane Fonda and others. So get ready, its going to get worse Somehow though Robert, I think you are obstinate enough to take it and even profit from the experience.
  I noted in a comment yesterday that there are no credentialed experts on Peak Oil, its still in the realm of self-educated amateurs as almost all creative science is until many years have passed. Darwin didn't have a doctorate in evolutionary biology, Einstein in Physics, Pythagoris in Math, and Marx in Economics. Throwing up a lack of credentials is an ad hominem attack. Your work is your credential, and critics lack that credential.
Bob,

I did find it interesting that someone I have never heard of launched a personal attack on so many people at once.  Makes you wonder if it was calculated to make the targets conclude that posting is simply not worth the hassle.

That's my opinion also, hence my reference to your internet paid Troll hypothesis. And I am very serious that your ELP program is extremely threatening to the establishment.
  The other possibility is that people like that don't need to be paid, they're just suckers and toadies. I was at an Iraq War-Social Security "reform" protest the summer before last at an UTMB Auditorium. They flew in Bush and Tom DeLay and hustled them in an entrance which was blocked off three blocks away from the protest, and bussed in a bunch of "counter-protesters from a school 100 miles away-Sam Houston State, who got equal time in spite of our outnumbering them ten to one. These fools were'nt paid, at least in any coin that I would consider valuable. I did tell the leader that if he was so important, how come he wasn't inside with Bush and DeLay. And I'm sure my photo is in some Commie Rat file in Washington right now, possibly matched up with my Viet Nam era files.
  This is how I expect we will be treated. Vilified and Ignored until simple geological facts trump their theories. Even then we won't ever be trusted by the Establishment, any more than old SDS folks have been trusted by them 30 years after the end of Civil Rights and Viet Nam. Its just too radical.

I just sure hope I'm being needlessly paranoid.

It's not paranoia when the government investigates citizens for free speech or political activities.

My lawyer, through a FOIA request, has found my name in a DOD "watch list" database.  I'm also on a California National Guard list, according to a friend in the Guard.  Recently some government entity crudely attempted to infiltrate an peace organization of which I am a member.

Be aware, be careful, but don't be afraid.

>My lawyer, through a FOIA request, has found my name in a DOD "watch list" database.  

Maybe they just like you alot. I would not be paranoid that your part of some watch list. As long as you don't plan to commit violent acts (ie terrorism, overthrow the gov't), you're in no danager. Personally, I do hope they read and learn from our discussions.

Well, actually you are in danger. I never planned or participated in violence when I was politically active. My biggest crime was probably figuring out that those pushing for violence were paid provocateurs. I paid heavily. But I'm alive. Many are not.
I would just point you to the case of Maher Harar, a resident of Ottawa, Ontario, who just happened to be on a Canadian RCMP 'list' that was shared with the US gov't. The end-result was that while travelling through the US, Mr. Harar was deported to Syria, where he spent a year in jail and was tortured, just for being (mistakenly) on that list. He's now back in Canada, and the blame game and law suits continue. Three more Canadians are possibly still in Syria for the same reason.
Hello oilmanbob; I sympathize with your suspicions.

FWIW, a couple years ago, the W administration generated a database of US citizens "likely to be terrorist risks", and who were to be barred from boarding commercial airliners at the gate.  Shortly after, the Minnesota StarTribune (the dominant paper in MN) carried a story or two about a spate of elderly people from northern MN barred from boarding airliners under this provision.  The barred passengers were never informed how they got on the list.  These elders were all US born locals, of Scandinavian (mostly Finnish) extraction.   The journalistic spin was to treat it as some light comedy about beaurocratic stupidity.

But these people were young adults during the communist labor movement in nothern Minnesota in the 1930's-50's.  I wonder if these elders were bona fide communist organizers in their heyday, and if that was why the W regime put their names in a terrosist data base.

Anybody know any more about this?

  Thorne Dreyer wrote an article a few weeks ago about the spying on the Students for a Democratic Society in the late 1960's in Austin, Texas. It seems the former head of the University of Texas Campus Police kicked the bucket and his children sold his personal files to Half-Price Books.Their web-pages link to those files.
  Isn't it ridiculous! 40 odd years after the fact the Powers that be still have the names and photographs of the beginning of the counter culture in Texas!
  I concluded sometime about 1980 that I was suffering from pot and acid induced paranoia about those years. Then during the current round of protests against the war in Iraq I saw clones of the same spies going around snapping pictures again. Times had changed, the police were now helping the eccentric old folks across the street at protests insted of hitting us with night sticks. I love protests now not because they do much good, but because its old reunion time amoung us elderly hippies.
  That same totalitarian mindset is stronger than ever. And these are the people who are what Jeffrey calls the Iron Triangle. And we can laugh about it all we want, but somewhere in Washington are 8 1/2" X 14" manilla files full of photographs with circles and arrows and paragraphs on the back of each one describing our good times in the Summer of Love and subversive involvement in Peak Oil.
One other note, the Totalitarian's can't stand ridicule. If you tell them their fly is open or point out the dog doo-doo on their shoe they will become too flustered to be threatening. And its fun, too!
wow. if they have a file on me I feel bad for whoever has to keep an eye on it. must be the most boring job ever. maybe I should download some porn or take a trip to a strip club or something to make things a bit more exciting for them.
If there's nothing exciting they just make it up. Surveillance never ends, never diminishes. Spies create threats to justify their budgets.
We all now know there were no WMDs in Iraq and we know something of the process that imagined them there. It is exactly the same with domestic threats.
You have a file AMPOD. You might not recognize yourself in that file.
Did anyone else notice that "Brutus" was going around doing much of the stabbing?  
Gee thanks, I dont post here that much. I find it fascinating a simple thing like the "growth" of reserves or more importantly how ridiculous reserve numbers are is unknown for people posting, not commenting, about peak oil.

I have spent plenty of time dealing with electric utilities and a lot of bad numbers which are used start conversations. My whole point in pointing to Mr. Rapier's post and I've only commented on two of them, is the use of claiming energy expertise as being an oil company employee and I reject that totally, he make that knowledge known amply.

I've never taken a personal shot at Mr. Rapier, I have pointed out on several occasions I don't accept being an employee of an oil company as any conclusive evidence on any matter. I thought yesterday's post in serious bad form in bold.

I don't in anyway mean to be deliberately disruptive or argue to argue, but it'd be nice at some point if people are taken to point on issue they simply admit it, instead of claiming personal attack.

I've never taken a personal shot at Mr. Rapier,

That's not true. In fact, you didn't actually address the facts of my post. You simply argued that this was common knowledge, borderline disinformation, and that you were shocked that the editors allowed it. You falsely claimed that I have claimed expertise in this area. Those ARE personal shots. You wrote this lie:

I've learned a lot of things on this site and its a very important issue, people deserve to be able get the best information possible and not "listen to me I'm oil company employee," and you do that all the time.

This one:

Well don't play an "expert" when you're not

This:

Putting your discovery about how reserves work using the US against the Saud's numbers is to say the least garbage, I'm surprised the editors allow this.

This:

But I think to explain to people how reserves numbers work or don't this post is somewhat irresponsible.

Those are personal attacks fellow. You didn't ever challenge anything in the post. Instead, you took the opportunity to take numerous personal shots at me.

 


My attack yesterday was definitely a bit personal.  And although I regret my incivility, I don't regret the substance.

If you are not an expert on upstream issues, I can't see why you are allowed to publish articles on them.  And I can't see why you allow yourself to do it.

Some of us in the cheap seats are going to heckle those who don't know their limits.  Make'em pay for wasting our time.

Just go back to your day job, dude, til you get up to speed.

You know, you are smart kid.  Someday you'll be worth listening to on world energy issues beyond your narrow areas of expertise.  But not yet.

If you are not an expert on upstream issues, I can't see why you are allowed to publish articles on them.  And I can't see why you allow yourself to do it.

Perhaps you don't understand that with very few exceptions, there are no actual experts here. The posters write on topics of interest, and then discussion is generated. Most of the staff is not actually in the energy business.

Someday you'll be worth listening to on world energy issues beyond your narrow areas of expertise.  But not yet.

Given the number of people who actually learned something from what I wrote, I will discount your opinion there.

Robert Rapier wrote:


Perhaps you don't understand that with very few exceptions, there are no actual experts here.

Q.E.D.    That is exactly the admission I was after all along.  And now it comes directly from a senior contributor.

Many of the articles on this site hereby discounted.

From now on, I'm here mainly for Leanan's very helpful Drum Beat links (and those provided by others)

Funny thing is that CERA has made the point on more than one occasion that 'peakists' simply were not up to speed on the complexities of reserve growth or the industry in general.

Reluctantly, I am forced to concur that they got that right.

 

Many of the articles on this site hereby discounted.

Don't let the door hit your ass on the way out.

Funny thing is that CERA has made the point on more than one occasion that 'peakists' simply were not up to speed on the complexities of reserve growth or the industry in general.

Reluctantly, I am forced to concur that they got that right.

Things now become a bit more clear to me.

If you are not an expert on upstream issues, I can't see why you are allowed to publish articles on them.  And I can't see why you allow yourself to do it.

Given that you were responsible for instigating the personal attacks (Brutus just followed your lead) let's talk about the problem here - one of which seems to be your expectations.

One problem with TOD that I often see is that posters are very tentative about posting - precisely because of the kind of reaction my essay prompted from you. I get e-mails all the time from people saying they don't feel like they have the knowledge to post. That's really tragic, in my opinion. But if we limited discussion to those who are bona fide experts - in that this is what they do for a living - maybe a dozen of us would be posting here. You wouldn't. Brutus wouldn't. Journalists certainly wouldn't have much they could write about.

If I want to learn about solar power, a good way to do this would be to research and post an essay on solar power. That would generate some good discussion, and help further knowledge on the issue. That is the purpose of TOD. The purpose is not for experts to spoon feed you your knowledge, which seems to be what you want.

Despite your comments, my areas of expertise are not narrow. I have a broad refining background, lots of biofuels experience, and I have run a GTL lab. In the energy business, that is pretty broad, and now I am transferring into upstream. I don't know what your expectations of expertise actually are, but there aren't many around here that have worked in so many different areas. I can guarantee you nobody at CERA has.

What you seem to be interested in doing is data mining. You are only looking for things that reinforce your POV. So, you look at my essay - which generated a lot of useful discussion and did in fact educate some people - and say "Aha, you guys are amateurs. I discount all of the articles here." But it seems that you don't in fact apply the same standards to CERA. The folks who work there mostly wouldn't meet the definition of "expert."

I guess the bottom line is that you and I seem to have different standards of what constitutes appropriate behavior. If someone posted something that I thought was common knowledge, or asked a "dumb" question, I certainly wouldn't respond to them in the way you responded to me. You were a jerk. I view the purpose here as one of sharing knowledge and learning. Chastising someone for posting something that you believe was common knowledge - especially given the fact that many people were surprised by the information - is not the way to foster open discussion.

Wow you're sensitive for what you write. So try this Robert. You use the fact that you're an employee of an oil company to back up a lot of what you say, in fact I imagine that's a big part of how you got your position here. You write for a blog that purports to talk about peak oil and then you write a post that shows you're completely clueless(and that's not personal) about how the oil industry accounts reserves.

Now just to show you this isn't personal, let's talk a little about reserves and how they do or don't work.

1)The actual process of reserve counting is controversial and there's been plenty of papers written about how it's done. Here's one for example: http://www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/1997/intricate_puzzle_reserves_growth/ m07fa.pdf   but let's not get into that.

2)Let's talk about the question of the discovery rates, because no matter how many reserves we supposedly have and how that is accounted, the bigger question is how those reserves are "replaced." Now if you know anything about the oil industry Robert, you know the reserves are constantly being depleted and they're being replaced by new discoveries.  Gee! That's how the oil industry has worked, for what, 150 years?

Now here comes Robert Rapier, employee of Chevron(?) and he discovers this is how the oil industry works and he posts as it a major surprise and oh he gets offended that people take him to task for it and instead of owning up to it, he claims he's being attacked personally - boo-hoo.

And on top of it, you try and tie this to some understanding of Saudi Reserves, when a guy like Matt Simmons writes a whole book on the topic, and you want to throw this out as new. Great.

You use the fact that you're an employee of an oil company to back up a lot of what you say...

I have asked for examples several times now, but I haven't gotten them. You simply aren't telling the truth about that. There are some things I know as an oil company employee that I sometimes share. I have never, ever said "believe me because I am an oil company employee." That just not true. But I go out of my way to help people with information, and I never, EVER spread disinformation. I also often say "I don't know."

You write for a blog that purports to talk about peak oil and then you write a post that shows you're completely clueless(and that's not personal) about how the oil industry accounts reserves.

This is why your reponses are so incredibly dishonest. I know how reserves work. It was the magnitude of the difference that surprised me (and many others). So, when I bring this up in relation to Saudi, lots of posters say "Oh, but that's not the case with Saudi." So, does the oil industry account for reserve in this way, or was the U.S. a special exception? That's the whole freaking point. Your attacks were merely to suggest that I don't know how reserves are accounted for, when that was not the case (and I have pointed this out several times).

he gets offended that people take him to task for it and instead of owning up to it

Yet what you "took me to task for" were false pretenses. I understand how reserves work. But many people were surprised that we have pulled our reserves down by 6 billion barrels while producing 59 billion barrels. If we had produced 10 or 15 million barrels, it wouldn't have been much of a surprise. But I think you know that this was the issue. You are just using the other as the pretense for justifying your response.

Brtus, I would really really love to see some credentials.

And losing your anonymity should have to be part of the display of credentials such that they can be verified.

RR is not anonymous and states his credentials. So far as I know you have NOT.

If you elect to not do so then I don't see that you have any traction in regards to dissing his.

Since you are anomymous(I am as well for several reasons) its easy to flame someone but when it pivots on the technical expertise area or knowledge of the subject then if you need to shed that anonymity or lose all credibility.

What about it? Do you wish to play fairly or just whine.
This being a forum on the subect of oil I would like to see those credentials as they regards the subject..petrochemicals and the obtaining of such.  

airdale-note airdale is anonymous but does not throw tech spears in an oil debate where he knows practically nothing

Where was I when the sparks flew? I mean shit if there's gonna be a flammin' goin on I definitely want to be part of it one way or another.

Can anybody summarize who attacked who over what? What/who are the competing factions?

It started here.  Personally, I hope it ends here and is not brought forward to today's DrumBeat.  We're past the point where this is in any way productive.
I'd say some people should reread, "I'm OK, You're OK". It is more informative to read intelligent exchanges between Adults than silly arguments with someone trying desperately to be the Parent.
"RR, I'm also shocked by the vituperative attacks against you, WT and Dave. Maybe there is something to the theory of Jeffrey's of paid Trolls."

But if its true, its fairly ironic that the person everyone calls the paid troll wasn't the one doing it, eh?

Surely Hotghor - you were behind the attacks under another name :-)
Blast!  Foiled by chemE again!
Hothgor, I'm personally sorry I ever called you a paid Troll and apologise. You've shown a huge amount of personal growth, and I'm glad for us and the forum. in fact you've probably done us all a service by presaging the attacks that I think are really just beginning.
RR: firstly let me say it was disappointing to see some of the  comments made about your article, but I think you handled it very well.

There is one point which I thought was obvious, but I don't think anyone made. Which is, that it costs money for oil companies to prove reserves. Even it only amounts to writing a report, someone has to write it. IOCs are not required to prove or otherwise all of their probable reserves, they only have to prove enough to demonstrate future growth potential and keep shareholders happy.

Therefore it makes sense that the IOCs maintain a "window" of proven reserves projecting a few decades forward, which gives rise to the anomaly of growing reserves.

The same point applies to NOCs, except that NOCs have less reason to spend money accounting for their reserves.


Company executives (Oil included) like slow and steady growth.  That's how you maximize executive earning potential.  
In time memory will turn the negatives to a generalized and indistinct bad taste. Good things survive better in memory than bad. And you will keep in touch with those who give you real feedback, building more positive memories. There will always be a fresh angry troll, so what.
" I find posts like this frustrating because many people imply that I should know about "reserve growth" and how it relates to the topic of peak oil, as if I am an expert."

If I read this comment by an emailer it seems he is stating that others believe him to be an expert and yet he doesn't understand reserves . Further since you brought up the issue of reserves its makes him frustrated somehow. Because he was 'blindsided' perhaps? Is that your(RRs) fault. It appears you are being blamed for developing data and ideas that are causing him grief and he is blaming you for that.

The SOMEHOW is what I do not understand unless this emailer was posing as somewhat of an 'expert' and perhaps making flatout exclamatory statements that others were refuting due to his appearing to be an expert when he isn't.

Am I off base or not understanding his complaint?

It seems a bit convoluted to me.

I have noticed in business that its easy to be confrontational with someone you have never met. Once you meet them on a personal basis then you tend to not treat them in such a fashion. This is why I think tele-commuting is not all that it is reputed to be. The personal touch is missing and the mentoring is totally lost. The friendships never develop and we become more and more isolated, leading to confrontations that would have been worked out more amicably otherwise. I always liked training the new guys and helping them along. In fact it used to be part of our performance plan for staff programmers and team leaders,,way back. Back before it all went to hell in IT.

airdale

Hi Airdale,

What that person was saying is that they are trying to learn about Peak Oil and energy issues, and they did not know about reserves growth. They learned something new. On the other hand, several posters in that thread went out of their way to suggest that "everyone" knows all about this and that this wasn't news (one even questioning why the editors would allow such a post). So, that is belittling to the newer poster who does not know it.

This is also what keeps a lot of new posters from posting. You often seen posts from people saying "I don't have much knowledge, but....." A person shouldn't have to make that qualification. This site is for learning. If someone asks me "What is Downstream?" and I reply with a belittling response, then that person may never post again.

I will try this again and nothing personal. There's nothing surprising about how ridiculous reserve numbers are. How you phrased that post rings a lot of alarm bells. The people who post as opposed to comment would seem to me to have to be held to a little higher standard. Simple as that, but maybe that's not the case, good to know.
Brutus, maybe reserve growth was not a surprize to you but it was a surprize to a lot of other people. Why are you making such a big deal about it? Maybe what is common knowledge to you is unknown to others. I have learnt a lot from RR, WT, Khebab, SS and other contributors that I had otherwise no hope of learning. And since you are so knowledgeable, why don't you write an article and share your expertise with us? Instead you hide behind an alias and snipe on others. I hope RR, WT, Khebab and others don't get discouraged by this. Please keep posting and sharing your knowledge. Suyog
Robert, I think you did a fantastic job with the thread yesterday. Much of what you said I agree with and of course there were some things I disagree with. However only the data from the coming months and years will eventually settle this debate. As Simmons puts it, "Data trumps all theories."

Reserve Growth

The newcomer to the list you mentioned is not the only one who does not understand reserve growth. I find that many people, perhaps even most people even on this list misunderstand reserve growth. I just have a couple of things to say about that subject in hopes of clearing up some of the fog. And of course many will disagree with even this, the most simple of explanations.

First reserve growth has nothing to do with new discoveries. That is a completely different category. And I must note that much of the increase in US reserves that so shocked you, was not reserve growth at all but new discoveries, particularly in the Gulf of Mexico.

Reserve growth is nothing more than the correcting of previous underestimates of the size of a reservoir. Sometimes this underestimate has been deliberate, as with most publicly held companies. Other times this underestimate were due to the true lack of knowledge about the true size of the reservoir. Surely no one truly believes that reserves actually grow!

And this last point brings up something that most cornucopians completely ignore or deny. Reserves can be, and often are, overestimated. That is, you can have reserve shrinkage just about as easy as you can have reserve growth. Shell, a couple of years ago, announced shrinkage in their reserves of about 20 percent. But no one called it reserve shrinkage. Most thought Shell was somehow negligent in their responsibility to their shareholders. Actually it was because their Oman reserves were originally overestimated instead of underestimated.

And last but not least, the reserves of the Middle East, estimated to be almost 700 billion barrels. These reserves, in my opinion, are vastly overestimated. What we will have, in the coming years, will be reserve shrinkage instead of reserve growth. Oh, there will still be reserve growth in some parts of the world. But the reserve shrinkage coming out of the Middle East will dwarf any reserve growth in other parts of the world.

Ron Patterson

My understanding was that there could be another type of reserve growth, technical improvement, that actually increases the amount of recoverable oil.  Although improved recovery technology might result in only minor reserve growth, if any, it certainly figures into a lot of the cornucopian agruments.

Are improvements in recovery technology incorporated into published reserve estimates?

>My understanding was that there could be another type of reserve growth, technical improvement, that actually increases the amount of recoverable oil.  Although improved recovery technology might result in only minor reserve growth, if any, it certainly figures into a lot of the cornucopian agruments.

Most of the new techology developed over the past decades was directed at improving extraction rates instead of maximizing recovery. In the cases of heavy water injection to maintain high extraction rates, the amount of economically recoverabl oil is reduced. Most of leading exporters targeted maximum extraction rate over maximumizing recovery. This is why many of us believe that decline rate will be much steeper than production increases during the first half of oil production.

Jubilando, no doubt that much of the reserve growth of the past was partially due to a greater percentage of recovery. The sandstone reservoirs in East Texas have some of the highest recovery rates in the world. But that was not due to any new technology. That was achieved by putting a well every few feet and slowly, slowly pumping the oil out.

Other than C02 injection, there is really no new recovery techniques that have been implemented in well over thirty years. And C02 injection is not practiced in enough places to really make any difference. Horizontal, Christmas tree wells are just a technique of putting many wells in one borehole. It simply increases the points from which oil can be drawn, much like Texas did with many vertical wells. And water and gas injection have been practiced for well over thirty years. In some places in Saudi Arabia, downhole electric pumps have been installed. But pumps over wellheads are obviously nothing new. It is just that slanted and horizontal wells must employ a different kind of pump. So what new techniques are you talking about?

And by the way, I posted a link a few days ago where Russia was complaining that Shell's over pumping of reservoirs there had lowered the recovery rate from 45 percent to 30 percent. That was probably an exaggeration but they are probably correct, over pumping does lower the percentage of oil that can be recovered. The point is, the percentage of oil recovered is not necessarily increasing, at least not everywhere.

Ron Patterson

Are improvements in recovery technology incorporated into published reserve estimates?


Yes. At one time deepwater reserves could not be "booked" as the technology required to extract them had not yet been developed or proved.


In addition to such technical factors you can also have reserve growth due to economic considerations. We are presently seeing projects being greenlighted because they are economically justifiable at an assumed price of $30 a bbl when they were not justified at an assumed price of $20 a bbl.


Despite the above it is important to draw a distinction between "reserves" which are probability estimates of recoverable OOIP and production figures which reflect actual bbls recovered and available to the market. The oil on the market constrains price and your ability to afford your commute; the oil contained in a "reserve" constrains the ability of the reserve owner to justify a development decision.

RR -
Keep up the good work.  
I think that the huge diference between 6gb and 57gb leaves many to wonder what or whom to trust.  To me the numbers (6 vrs 57) are so out of whack it renders them meaningless.  The message this implies at best is this is very muddy water or at worst ignore depleation rates completely.  This may anger many who look to this site for answers.  Also, if I were a anti PO conspirisy fan then your post would make a very good target because it could be viewed as being effective in creating "enough" doubt.  

Obvious to anyone who cares to look and to any who lived during the 70's oil crisis this is very serious business.  
I think it is very plausable that this site is being monitored as the economic implications are enourmous enough to pay someone to watch and also comment.  IMO it is easy to look at content and question the senders motivations, I think you are going to suffer some base level of criticism because of this and the nature of your post accurate or not.  

I just watched "Thank you for smoking" a very, very good movie.  Points to the obvious motivation that money has whether we like it or not.  You will get critics deservedly or no...

This is not a finger pointing post and I appologize in advance if it sounds that way.  I find it interesting but not surprising that you have been getting so much flack.

Robert, in the big picture I come back to this - you can toss reserve growth and production above stated reserves out the window IMO. The US has been in decline and we are so very oil dependant on, and give our money to, people(countries) who may tolerate or worse hate us and act to harm us.  I think the focus needs to be here and nowhere else, get us to move toward reducing our energy foot print in a big way.  If we don't it will be that much worse later.  So if you want to talk about reserve growth and production ammounts be my guest.  If we are close to PO or nat gas or both then time is very very short for the task at hand.
IMO you need to go after the grossly, overly optimistic reports that are out there (plenty to choose from) and somehow get the time frame shorter and increase action.  You seem to disagree with thier views as do many others and I think they need some anti-optimism thrust at them.

I wish you the best. I also hope for our collective future there emerges one stong clear voice that will rise above the noise and get the US moving.  

Ron P.
"Surely no one truly believes that reserves actually grow!"

It is a bit of a misnomer "reserve growth". Sounds better than we really made an educated guess in the first place.

About reserve growth. I invite people to check Rembrandt last piece on reserve growth, great stuff:

A Primer on Reserve Growth - part 1 of 3

Khebab,

This subject remains muddled, and I think at the core of the debate on Peak Oil.

I read your link above, and have tried to follow this, as I believe it is central.  Simmons, until lately, had convinced me that the problem with reserves was inconsequential due to false data and deliberate manipulation of stated reserves.

In the thread above, the "discreptancy"  is explained by implying it is not reserve growth (and any can understand that a finite quanity must remain finite) but that it is rather new discoveries we are viewing in the US, specifically the Gulf.  This can be accepted, but the problem remains that, even accepting KSA exploration and discovery as complete, one has a hard time applying RR's look at the post 1980 US and the rest of the world.  There's alot of room for doubt that worldwide discovery should remain inconsequential.  XOM for starters keeps shouting this.

Rembrandt, who appears to include new discoveries within reserve growth, hones in on recovery factors.  These, he feels, increase only rate of recovery, not actual quanity, and will be better illuminated with future, better, data.  I don't quite see how it addresses RR's post, but then I could have missed something.

We are left then with WT's assertions to the primacy of the Texas-KSA relationship, and the facts that peaks have occured in the major oil fields and several world regions.

But the central question remains clouded by looking at the US long past peak and seeing over 20 years production with only 6 GB decline in reserves.  It throws that peak's curve, or plateau, out to 2020 and beyond. I for one would really  appreciate an in depth TOD look at the question of reserves, zeroing in on the apparent anamoly of the last 20 years of the US.  

Thanks for your link above and any others you might provide.    

"It throws that peak's curve," ie the world peak, not US.
Re: I don't quite see how it addresses RR's post, but then I could have missed something.
In order to prevent comparing apples with oranges it is necessary to look at the best estimates for recoverable reserves over time (not too conservative or too optimistic). This means taking changes in proven + probable (2P) reserves over time, because this approach gives the best estimate for ultimate recovery of an oil field. This implicates that publications and databases that base themselves on proven reserves such as the World Oil, the Oil & Gas Journal and the BP Statistical Review are automatically ruled out for purposes of making reserve growth estimates!. The only sources that should be taken to study reserve growth are the IHS Energy and WoodMackenzie databases, because these are the best databases which contain proven + probable reserve estimates.

well, it's pretty clear to me, RR looked at the US 1P reserves but they cannot be used to estimate reserve growth!
Yes, you made this point yesterday.  It just baffles me that people presumably able to tie their boot laces and certainly able to write can not grasp it.
Khebab,

"It's because 1P reserves for the US were always grossely underestimated as you can see on the chart below. The red curve is what "true reserves" should look like. Reserve numbers in 1982 should have been around 135.42 Gb and not 28 Gb. In 2005, the logistic reserve is about 61.45 Gb which means that reserves have declined by 74 Gb and we have consumed nearly 72.77 Gb (CO+NGL) in the same time."

That was your post yesterday, which I missed, and coupled with the above, explains the position quite well.  Thankyou.

"/First reserve growth has nothing to do with new discoveries. That is a completely different category. And I must note that much of the increase in US reserves that so shocked you, was not reserve growth at all but new discoveries, particularly in the Gulf of Mexico."

Could you explain how the US has found enough oil over the past 24 years to offset all but 6 Gb of production, and from the GoM alone at that?  Wasn't there supposed to only be 15 Gb there at most?  I'm not attacking you directly, but I feel I must point out that if the US 'discover' this much oil in the most well explored country on the planet, what is stopping a similar ratio of discovery from happening in KSA?

Remember, our peak rate was very similar to KSA, and WT says that KSA must follow the same path that the US did...

Remember, our peak rate was very similar to KSA, and WT says that KSA must follow the same path that the US did...

Well, Hothgor and I agree on something.  

To be precise, I think that KSA will follow the same path as Texas, which is now producing about 27% of its 1972 peak rate.  

I think that the world will follow the same path as the Lower 48, which is now producing about 45% of its 1970 peak rate.

BTW, the long term net decline rate per year for Texas oil production has been about 4% per year since 1972.  For the Lower 48, about 2%.

Interestingly enough, the average year over year decline for KSA crude + condensate has been about 4% so far.  

Hothgor, I respectfully request that you try to understand a statement before you reply. Look again at what I wrote:

And I must note that much of the increase in US reserves that so shocked you, was not reserve growth at all but new discoveries, particularly in the Gulf of Mexico.

I said much! Do you understand what that term means? It has a totally different meaning than all!

Most ofhe offshore oil in Saudi Arabia is in very shallow water. From all the offshore platforms in the Safaniya field, you can actually see the bottom when the water is calm. I know because I have been there. And even their further offshore wells were all drilled with jackup rigs and the platforms all sit on the ocean floor. There are no tethered platforms in the Persian Gulf.

The vast majority of wells in the Gulf of Mexico are in much deeper water, though some do sit on the ocean floor. But platforms like Hungry Horse are floating platforms and are tethered to the ocean floor with giant anchors. Much of this oil has only recently been found and added to the US proven reserves.

There are no unexplored areas of the Persian Gulf. There are no areas on land, inside the Middle East oil triangle, in Saudi Arabia that are unexplored. All the giant fields in Saudi Arabia have already been found and tapped long ago. There are still some, very tiny, fields in Saudi that are untapped. Saudi is now in the proccess of tapping many of these fields. Most of them however, like Khurais, were tapped many years ago and closed down due to low production.

Khurais peaked in 1981 at 144,000 barrels per day. The following year production from Khurais began to drop dramatically. Then a gas injection program was inituated to try to improve the flow rate. It was a total failure, production continued to drop and the field was abandoned.

Now Saudi is about to inituate another injection program for Khurais, this time a seawater injection program. At first they said that as much as 800,000 barrels per day may be drawn from Khurais. Later someone upped that figure to 1,200,000 barrels per day. Yeah, right! Lotsa luck fella.

The point is these are the extremes that Saudi Arabia is going to in order to try to increase production. There are no new fields in Saudi Arabia. They are relying instead on tapping old fields, most that were shutdown in the past due to low production.

Ron Patterson

Correction

Sorry, I meant Thunder Horse not Hungry Horse.

Ron Patterson

Lunch time perhaps?  :-)
So let me sum this up nicely:  You are stating for a FACT that there is absolutely ZERO oil left to be found in all of KSA and the entire ME, despite the fact that there are still vast unexplored areas in that region.  And you are saying this in spite of the fact that the most explored region on the planet, the US, has continued to find 50+ Gb in the past 24 years alone.  By default, this means that all ME oil is located ONLY in a few 'king' and 'queen' fields, and that there are no jacks, or even deuces at all whatsoever, in extreme divergence from the field variance history for the rest of the planet.

Are you on the record as stating this?

 Hothgar, Ron Patterson is guilty of rhetorical exageration. Jeffreys point, the point we are debating, was that in spite of the huge increase in drilling in Texas, doubling the number of producing wells between 1976-1982, total production went down. His point is right, I worked through that period. And he further states that we can expect the same lack of results from the Saudi Drilling program. And thats a reasonable hypothesis, although there a number of different factors in the Persian Gulf area. Jeffrey could in fact be wrong about that, certainly RR implies that he is, and the Saud family, who is ponying up the money thinks Jeffrey is wrong, as well as CERA,Michael Lynch, Exxon and the EIA.
  Myself, I think the data is too occluded, I'm withholding judgement.
  But this really isn't a big game of "gotcha". I really pray that Jeffrey and Ron are wrong, but my gut says they're right
Hothgar, Ron Patterson is guilty of rhetorical exageration.

Oil Man Bob, Please point to the sentence or paragraph where I am guilty of rhetorical exaggeration.* What I said was: There are no new fields in Saudi Arabia. That, dammit is not a rhetorical exaggeration, it is the absolute truth. Well it is the truth if Matt Simmons is to be believed. And he backs up every one of his statements with references.

But if that was not the sentence, or paragraph where I exaggerated thn please explain yourself. I am very careful not to do that and I find it deeply frustrating when people, like Hothgor, change my words to say something I never intended to say, and people like Oilmanbob, read those words and think I actually uttered them, then accuse me of exaggerating.

Again, I am not an exaggerator and I take great pains not to do so. But if I ever slipped and did so, then point out the case and I will apologize.

Ron Patterson

You are stating for a FACT that there is absolutely ZERO oil left to be found in all of KSA and the entire ME, despite the fact that there are still vast unexplored areas in that region.

Hothgor, is English your native language. You seem to be having real problems understanding anything I write. I said no such thing as you wrote above. I cannot say that there is no oil left to be found in SA. What I did say was There are no new fields in Saudi Arabia. Learn to read or please quit responding Hothgor!

But you obvioulsy are totally uninformed concerning Saudi Arabia. There are no aress, except a strip of land along the Iraqu border, that is unexplored in Saudi Arabia. That geology of that area, like the area over the Arabian Shield, is known not to be the kind that usually produces oil.

Other than that the entire nation has been explored. The last field was found in 1989, the Hawtha Trend Fields. These are the only oil fields found in SA outside the Eastern Province. The Hawtha Trend Fields are about a dozen very tiny fields that give virtually no promise on any significant oil ever to be pumped from them. And these were the only fields in Saudi Arabia found since 1969 when Shabah was discovered. Nothing else was found in that 20 year span and nothing else has been found since despite continious exploration efforts.

Let me repeat this Hothgor: "There are no new fields in Saudi Arabia." The last field of any size was found in 1969, nothing else since except those pipsqueak Hawtha Trend Fields, and they count for virtually nothing.

And as far as the US goes, though we have found about 15 billion barrels in the Gulf of Mexico, (perhaps a bit more), not the 50+ you indicate, production in the US has continued to decline.

Saudi Arabia has no deepwaters to explore. Of course you probably did not know that, still being wet behind the ears as you obviously are. Younguns are not expected to be overly smart these days. But no area on earth has been more throughly explored than Saudi Arabia.

Ron Patterson

Ron, I'm not an expert on Saudi oil finds, and frankly I don't much care. Whatever the Kingdom finds is going to be inconsequential compared to the fields  they already produce. I question 15 billion barrels in the Gulf in the last 25 years. There are very few oil producing offshore fields in the GOM, Lake Washington, Mobile Bay, and field extensions from High Island and Goose Creek. Thunderhorse and Jack aren't producing-so their production is hypothetical. There's a lot of gas and condensate fields, just not much oil.
  I, like RR am amazed at the size of the discrepancy. Its a couple of Trillion dollars at today's prices, and I would welcome an explanation. Don't get you panties in a wad, were're on the same side. Peace, brother  
Oilmanbob, sorry but my panties are in a wad. You accused me of rhetorical exaggeration and I demand that you prove that statement or retract it.

I stated that there are no new fields in Saudi Arabia. And that was the statement that Hothgor twisted into something else. And apparently that was what you called a rhetorical exaggeration on my part. It was not. There have been no new major fields discovered in Saudi Arabia since 1969 and only one tiny group of very minor fields, discovered in 1989, deep in the interior of the nation, since then. That these tiny fields were discovered, half way between the Persian Gulf and the Arabian Shield, testifies to the extensive search ARAMCO has gone to trying to discover new fields. They have found NONE!

You may question the 15 billion barrels found in the Gulf of Mexico but that is entirely beside the point. Those barrels are, and were, counted in the USGS estimate of US reserves. Whether they pan out or not doesn't matter. They were included in RRs "dramatic growth" in US reserves which so shocked him yesterday. But hell, Jack 2 is estimated to be over half that amount. I think 15 billion barrels is a very conservative.

But the point is Bob, I am not an exaggerator and it very much pisses me off to be accused of such.

So would you kindly point out my exaggeration or retract that statement.

Anxiously awaiting your reply.

Ron Patterson

  I'll yield to your expertise on Saudi. I'm sorry, I know you aren't one to exagerate. But, there ain't 15 bbls. of new oil reserves in the US Gulf! I don't care what the USGS  says. There may be 15 billion barrels of oil equivalent, but the only two major oil discoveries in US waters of the Gulf are Thunderhorse in the Green Canyon Area and Jack in the Eocene Subsalt Trend, which may very well prove uneconomic. I find the USGS reserve numbers as baffling as they come.
  In case you haven't noticed, I don't mind admitting when I'm wrong and trying to do better in the future. I'm a generalist, pretty good understanding and some expertise in areas like redevelopment of old oil fields, land law and title law. But I do keep up with discoveries and trends in the US. I suspect my case is the same as many others on this site-we each see a small piece clearly and try to share while learning from others. Its TOD's great strength, some real communal knowledge.
  At any rate, it doesn't matter about Saudi, because even if  you are wrong and they discover some fields, they can't offset their decline for very long. The KSA fields appear to be at peak or slightly past peak, and Ghawar isn't at all likely to be replaced in the mideast. Its a mature oil province.
  Peace, Enough already, I'm on your side!  
I meant to say ther are not 15 billion barrels of new oil discoveries in the Gulf of Mexico, not 15 bbl. This was a typing and proofing mistake.
Alright guys, I did a little research. Thunderhorse has 300 million barrels of reserves, but they kep putting off first production date. Jack 2 was an appraisal well that flowed 6,000 bbl/day and proves another 300 million barrel field, which may or may not prove economic to produce. The lower Tertiary trend may contain additional reserves of up to 15 billion barrels in a trend 300 miles long.
  If my napkin figures are right, thats 600 million barrels of crude in the US GOM waters, a far cry from 15 billion barrels
  The biggest onshore play has been the Giddings Austin Chalk, which has produced 450 million barrels since 1960, and may contain as much as 10 billion barrels, according to Ray Holifield, who is the best geophysicist operating in the field. I know Ray and he's always been optimistic, but he's a great oil finder. Now for my napkin and pencil...
at the most optimistic that leaves 26 billion barrels for "reserve growth" to be explained, but probably a whole lot more, because of that figure only the Giddings field 450 million barrels was produced. There are also some smaller fields like the Kurten Field and the Bryan Field in Texas.
So, Robert Rapier is in my opinion right. There is something fishy about the USGS reserve figures.
  Production rates really do matter. We have lots of old fields in Texas which can be redrilled at prices above $50 a barrel, perhaps raising the total recovery here by 20%. But its not going to be easy or cheap.
Bob, I did not see your correction until I posted the above. I have never claimed that there were 15 billion barrels of new discoveries in the Gulf. But Robert's date was (I believe) 1986. I have absolutely no doubt that there has been 15 billion barrels added to US reserves in that area since 1986. After all, we have produced 15 billion barrels from that area. And adding 15 billion barrels since then is not that much of a stretch.

Perhaps you are talking about newer oil? We need to define terms here.

Ron Patterson

I'll yield to your expertise on Saudi. I'm sorry, I know you aren't one to exagerate. But, there ain't 15 bbls. of new oil reserves in the US Gulf! I don't care what the USGS  says.

Surely you jest!

Original proved reserves are estimated to have been 12.01 billion barrels of oil and 144.9 trillion cubic feet of gas from 899proved fields under the Federal submerged lands in the Gulf of Mexico. Included in this number are 145 fields that are depleted and abandoned; not included are the 76 unproved active fields. As of December 31, 1995, cumulative production from these 899 fields was 9.68 billion barrels of oil and 117.4 trillion cubic feet of gas.

By the end of 1995 there had already been produced 9.68 billion barrels of oil from the GOM, with an estimated 12.01 billion barrels remaining. And since 1996 we have produced over 5 billion barrels from the GOM. That puts current production at over 15 billion barrels.

By September 2001  that reserves figure had been increased to 14.265 billion barrels of proven reserves, with probable reserves reaching well over 15 billion barrels. Since that date, several new discoveries have been made. Jack 2 is estimated to have a minimum of 3 billion barrels of reserves. That would put current reserves in the GOM at over 17 billion barrels.

Once again Oilman, I do not exaggerate. I may speak off the cuff occasionally and only guess at my data. But even then it is always close. And the vast majority of time I can back up every figure I post with a URL or a reference.

Bob, I have absolutely no problem with there being 15 billion barrels of proven reserves in the GOM and I simply cannot imagine why you do. After all we are producing over 1.5 million barrels per day from the area. Good God man, what's the problem?

Ron Patterson

"Hothgor, is English your native language. You seem to be having real problems understanding anything I write. I said no such thing as you wrote above. I cannot say that there is no oil left to be found in SA. What I did say was There are no new fields in Saudi Arabia. Learn to read or please quit responding Hothgor!

Ok, so as I said, there are two possibilities then.

  1.  There is zero new oil to discover in all of KSA, and their 160.2 Gb reservers from 1982 is all they ever had, or ever will have.
  2.  RR is right, and KSA will experience a similar 'reserve growth' phenomenon.

If the same ratio holds true, KSA will have roughly 120 Gb left to produce at this moment.  Assuming no new fields will ever be found.

However, you still did not address one of my points:  Are we now saying that the KSA region is unique in all of the world in that the region ONLY includes King and Queen fields, with nothing smaller?  Or are you just blowing smoke up our collective butts because the 'paid troll' has you caught red handed in a blatant misrepresentation of the facts ~_~

These are just two points in a wide spectrum of possibilities. For example, reserve growth in KSA could be half of what we saw in Texas, or double.

I seem to recall from Hubbert's Senate report from the 1960s - can't one plot discoveries or reserves for some region versus time, just like one plots production. One's estimate of what's left to pump will grow at first and then shrink - it ought to be a logistic curve much like the production curve, but leading it.

But I don't remember how Hubbert distinguished between change in total reserves due to reserve growth from existing fields versus new fields.

How many new fields were discovered in Texas or the lower 48 after 1980? Was all that reserve growth from existing fields?

Hothgor,
The main point about KSA is that the Kings and Queens are fundamentally some of the largest and most productive fields ever discovered in the History of oil. So far they have not discovered other equally bountiful fields.

They may discover a knight or a few pawns, but the discrepency between the size of the King and Queens when compared with the pawns is such that making up a shortfall when the Kings and Queens show clear signs of depletion will be impossible.

Of course, the KSA may have found other hypergiants , buried the publication of these fields and have them ready to tap into. Any time they wish. However that would go against the grain of 100 years of oil exploitation.

And right now, if KSA was to announce further , huge, proven reserves, than all here could switch off and go back to sleep. And now would be the time to do it.

It is a misconception that just because the KSA found so much oil with so little exploration and appraisal drilling, more exp drilling will find more Ghawars.

KSA hit the jackpot because the jackpot was unmissable.

Oil occurs in discrete (relatively discrete) pockets. Look at where oil is found in the Middle East. It is in a relatively small area of the Middle East, a 'golden triangle' if you like.

A really good example is the geological structure of the North Sea: The oil fields of the north sea are highly concentrated in a rift structure called the Viking Graben.

Wander too far from this structure and you drill dry holes.

Geologists and Geophysicists have spent their lives and staked careers on what works. It is not likely that they have been looking at the wrong structures.

I admire your boundless optimism and your belief in hope over experience. Keep it up! (is that patronising enough?)

Hothgor. You are not so much a troll, more a devil's advocate. Keep on posting.

Hothgor, it would be an education for you if you would only read "Twilight in the Desert". You stated:

Are we now saying that the KSA region is unique in all of the world in that the region ONLY includes King and Queen fields, with nothing smaller?

DAMN man! Did I say that. Hell no, dozens of much smaller fields have been found in Saudi, and they are currently producing oil from these small fields for all it's worth. But there are no new fields in Saudi Arabia, large or small.

Or are you just blowing smoke up our collective butts because the 'paid troll' has you caught red handed in a blatant misrepresentation of the facts ~_~

You stupid ass, just tell me where I am misrepresenting the facts. Tell me one fact that I have misrepresented. I have not been caught red handed doing anything because everything I have stated can be documented.

I told Robert yesterday that I am sometimes rude myself and I always regret it later. But why does it make me feel so good by calling you a stupid ass. I may regret it later but now it just feels so damn good. You stupid ass.

Ron Patterson

And you said...

"Hothgor, is English your native language. You seem to be having real problems understanding anything I write. I said no such thing as you wrote above. I cannot say that there is no oil left to be found in SA. What I did say was There are no new fields in Saudi Arabia. Learn to read or please quit responding Hothgor!"

Let me repeat this:

"What I did say was There are no new fields in Saudi Arabia. "

So, if there are no new fields, then that means that KSA is a unique region in the entire world that contains only Kings and Queens and almost no pawns.  Then what does that mean?  Its production history will not follow other regions such as the Lower 48 or the North Sea, as the field distribution is fundamentally different then those regions.  Thank you for shedding light on this issue, as we can now safely say that Westexas was wrong! <chortle>

I guess you should follow your own advise then:

"Learn to read or please quit responding"

Hothgor, I usually tolerate your posts because you do put some good questions and provide some optimism vs the general pessimism and doomerism here.  However, you really should apologizae to WT for this last post.  This is not a high school debating club.  It's a serious attempt to provide the 'peak oil is very near' argument in a complete and convincing fashion.  Gotcha is so juvenile and you use it so frequently that I have to believe your at best a teenager, and should modify your behaviour as you have neither the knowledege not the maturity to continue arguments.  If you're a young adult, you need to take some steps to mature beyond that teenage mentality rhat you constantly display.
Sorry, bud, I feel it needs to be said.
The <chortle> comment was meant to signify that my last comment was a joke, or that I was being sarcastic or both.
Hothgor wrote:

So, if there are no new fields, then that means that KSA is a unique region in the entire world that contains only Kings and Queens and almost no pawns.  Then what does that mean?  Its production history will not follow other regions such as the Lower 48 or the North Sea, as the field distribution is fundamentally different then those regions.  Thank you for shedding light on this issue, as we can now safely say that Westexas was wrong! <chortle>

Good God, what type of logic are you using here. Why does no new fields mean only Kings and Queens and almost no pawns? Hell no, there are dozens of pawns and they were all discovered from the 1930s thru the 1960s. There are literally dozens of very old pawns. There are no new pawns.

And Westexas is exactly right, it is Hothgor who is wrong, as usual. And you could use a good course in logic because your current logic matches that of a three year old.

Ron Patterson

Then would you care to explain how the US, the most explored region on the planet, continued to find new discoveries, some of them quite large, after the peak in production in the early 70s, but KSA, which might have peaked back in 2005, will find no new fields whatsoever?

The two don't mesh if WT is right, and that the KSA will follow a similar production curve.  If we are to believe your line of logic, we must then assume that WT is wrong, and things will either last a lot longer, or get a whole lot worse then they are now in very very short order.

Then would you care to explain how the US, the most explored region on the planet, continued to find new discoveries, some of them quite large, after the peak in production in the early 70s, but KSA, which might have peaked back in 2005, will find no new fields whatsoever?

You are confusing production with discoveries. The only major discoveries after 1970 were in the Gulf of Mexico. Alaska was developed after 1970 but discovered well before that. There were no major discoveries in the US after 1970 except in the GOM. And I really don't know what percentage of the oil in the GOM was discovered before 1970. At any rate Saudi Arabia does not have a GOM or an Alaska.

The two don't mesh if WT is right, and that the KSA will follow a similar production curve.  If we are to believe your line of logic, we must then assume that WT is wrong, and things will either last a lot longer, or get a whole lot worse then they are now in very very short order.

I cannot speak for WT but I suspect he means production in SA will continue on a downward trend. I would agree. I don't think for one minute that he really means that SA will develope an Alaska, then discover and develope a GOM. That just ain't gonna happen. And yes I do expect things to get very bad in Saudi Arabia in the next 10 years.

Ron Patterson

Saudi Arabia is very small, and the region of oil is mapped out in many of Simmons' presentations - about the size of 2 southwestern states at most. This is a small area to explore compared to the US, not even discussing the Gulf and Alaska. What's the problem?
Ron, u will regret your nasty post in the morning.

Methinx the basis of the hostilities in this thread has its foundation in nobody posting numbers.  Let us review.

Saudi Aramco say they have 260-Gb of P1 remaining plus 99-Gb that have been extracted.

They claim that they can maintain the present 10-mbd MSC (max sustained capacity - not production) until 2042 w/o touching P2.

P2 is claimed to be 32-Gb

P3 is claimed to be 71-Gb

And they claim to have 238-Gb in contingent resource on top.

This totals 700-Gb

They claim on top of that they have 200-Gb in undiscovered.

The USGS estimated their undiscovered at 87-Gb in Y2k.

Going back to P1, they admit to having 131-Gb of it in development and 129-Gb is in field yet undeveloped.

Ok kids, go at it ...  

This totals 700-Gb.

Freddy, this number is totally absurd, simply beyond belief. Saudi has 700-Gb of reserves? Are you so naive as to actually believe this?

No, I do not really think you are so dumb as to believe such an absurd number Freddy. No one is that dumb.

But I am really curious as to know what you really do believe. Would you believe 300 Gb?

Just curious.

Ron Patterson

While I agree in part with FH here that the numbers are probably significantly higher then the figures thrown around here and in various PO circles, it does come down to production.  It wont matter if they have 700 Gb of reserves if they can only produce 2 to 3 million bpd of it at a time.
Please Ron, i did not say they had 700-Gb of reserves.  I wrote that SA states that they have:

363-Gb of P1, P2 & P3 discovered reserves
238-Gb of discoverd subcommecial resource
 99-Gb past extraction

Why would u attribute such crap towards me?  What is your prob today?

They have stated that their URR is 700-Gb and these are their component figures.

They are basing their 2055 forecast on the existing P1 of 260-Gb + 35-Gb of existing P2.  This would give them 12-mbd of capacity 'til 2055 and 9.5 to 10-mbd of supply from 2016 to 2055.  And yes, i like their numbers.  It's 295-Gb.  And close to your "300".

While the 2004 forecast was to increase capacity by 0.5-mbd from 2011 to 2016 to attain the 12-mbd capacity (not production); they since said in May 2006 that they would be accelerating the capacity build to reach 12-mbd in 2010.  Then last month they claimed to be already at 11.2-mbd capacity of which 2.6-mbd is spare capacity, leaving a present sustained production rate of 8.6-mbd and claim they are presently producing an avg 10-mbd (incl NGL's and proc gains.  SA went on to say that they will attain 12.6-mbd capacity and 10-mbd of sustained production in August 2009.

Mark it in your calendar, Ronny!

It was u who said "I will go on record as saying Saudi will not push production to 10 million barrels per day in the next couple of years. Hell, I will go on record and say they will never push production to 10 million barrels per day average for one year."

I have put these figures out several times.  So that bet was kinda lame when u knew 2007 & 2008 & most of 2009 were out of the target range.  Eh, ronny?!!

That aside, since 2004 i have been scrutinizing all the Outlooks to see what they say about SA or ME production at the time intervals.  That is why i discounted the EIA forecast on my Scenarios graphic & called it the EIA/Aramco projection.

Today we see IEA as the most optimistic Scenario long term with a 103-mbd peak.  Unfortunately, it targets 14.6-mbd of that from Saudi Arabia.  It ain't gonna happen.  And that's why i'm shying away from my affair with IEA and prefer the newly suggested "AVERAGE" graph insertion of 95-mbd @ Peak.

Let me repeat this Hothgor: "There are no new fields in Saudi Arabia." The last field of any size was found in 1969, nothing else since except those pipsqueak Hawtha Trend Fields, and they count for virtually nothing.

Careful, Ron. You're turning blue in the face.

You can only school someone for so long. Let go.

"Data trumps all theories."

Name one piece of data, other than your personal existence, that isn't based on any theory of measurement or observation.

I would like to say this, albeit somewhat belatedly: I thought your post was excellent, and I hope you will still have time to share such insights with us while you are on a steep learning curve in Scotland. Let's face it, most people wouldn't be able to do that, so let us all hope...

Really, this site has its giants, and you are one of them - especially so as you do not always preach to the choir. We all need to hear what you have to say. So please don't be put off by the negative stuff you get. There are plenty of people reading but not posting, thinking, 'Yeah...'.

Thanks, Robert.

Hey, Robert -- and all.

I too appreciate civility on TOD.  In fact, I insist upon it!

One way to make sure a response is civil is to respond to the whole group of readers as well as to the post or comment you are commenting about.  Pissing matches ought to be taken to private e-mail and dealt with there.

If a pissing match seems too full of technical info and that we all would be deprived of that if the pissing match were moved off of TOD, then maybe one or both participants could summarize the "valuable material" and bring it back later....much later, probably.

I appreciate the posts of RR and WT, and of many other folks as well. I like threads that center on topic and not on individual participants.

The occassional praise and thanks seems civil and proper, but criticisms of individuals might best be done in private email as well.  

Too often criticism of individuals on a thread just poisons the thread, especially for newbies.

Above all, we all need to remind ourselves to breathe deeply and to remember "Relax, you're soaking in it!" with regards to petroleum.

(Doesn't "relax, you're soaking in it come from an old dishwashing detergent ad?)

So thanks to RR and to all who take time to compose posts and to compose considered, thoughtful comments!

Robert, I hope that my responses to you were not amongst those that you felt were insulting. (Yes, I insulted Hothgor. I tired of the witless troll.) Because I respect you, I attempted to stick to the core of the matter, which is why many of us believe KSA has about 70 billion barrels of oil left. That was directly related to the HL predictions for the US and Russia having been so accurate thus fostering a high degree of confidence in the HL predictions for KSA, which you seem to consistently dismiss, both in your article and in your debate with Westexas. In fact, despite the convergence of the KSA HL prediction and the reserve numbers mentioned in Twilight In The Desert's appendices, you flatly stated that you would stick with the higher 160 billion number unless someone could demonstrate a reason to believe otherwise. And yet, when we give that demonstration (the HL plot for KSA), it is dismissed as insufficient evidence.

I find this behavior of yours baffling despite the model's high degree of accuracy for the US and Russia and given the clear failure of traditional measures of reserves to account for the actual production of the US since peak.

Let me reiterate:

  1. The Hubbert Curve predicted the US peak accurately.
  2. The HL approach predicted US production post-peak 1970-2006 to 99% accuracy using only pre-peak data.
  3. The HL approach predicted Russian production post peak to present to within 95% accuracy using only pre-peak data.
  4. The HL technique strongly disputed the reserve numbers for Kuwait and in the last year we have had public admissions from Kuwait that actual reserves are much closer to what the HL method predicts than the formerly inflated numbers.
  5. The HL technique strongly suggests that KSA's remaining reserves are in the 70 billion barrel range.
  6. The HL technique suggests that KSA is on the verge of irreversible declines.
  7. KSA production is down precisely when the HL technique says it should start down. Yes there have been prior ups and downs but the HL technique did not predict those because they were political. This one appears to be geological.

The first 4 statements are facts that the model predicts and which have been verified. The next 2 statements are predictions of the model. The final statement is a fact also though the cause remains in dispute. Given the former accuracy of the model, I think it becomes incumbent on you to demonstrate why another approach is better than the HL model. Instead you have not done this at all, choosing to refer to proprietary information that you are unable to share, to methods whose results surprised even you (yet which were still consistent with the HL predictions for the US), and you keep asking for further proof. At this point I am unsure what else to give you. The numbers sit there staring you in the face but for some reason you keep reaching for other numbers.

Perhaps if you would explain why you reject the HL predictions for KSA, we might understand your position. But right now you appear to be rejecting it without cause. Based on your writings here and at your blog you usually have a cause for your conclusions, hence my request that you examine the HL method in detail and explain to us why you reject it (or perhaps why you might choose to accept it now).

Finally, I am not suggesting that the HL approach is the only or even the best approach. People like WHT are looking for approaches that make more sense (like the shock model) and I applaud that effort. Yet before we reject the Hubbert Curve and Hubbert Linearization, we all need to remember how accurate it has been thus far on major producing regions.

Robert, I hope that my responses to you were not amongst those that you felt were insulting.

OK, back in Montana now. No, your post was not one of the insulting ones. Yours was in disagreement, but I have no problem with that. What I have a problem with is "I disagree, and you are an idiot", or simply "You are an idiot."

Perhaps if you would explain why you reject the HL predictions for KSA, we might understand your position.

I don't reject them. In fact, I was trying to confirm them, and that essay was the result of what I found.

Perhaps if you would explain why you reject the HL predictions for KSA, we might understand your position. But right now you appear to be rejecting it without cause. Based on your writings here and at your blog you usually have a cause for your conclusions, hence my request that you examine the HL method in detail and explain to us why you reject it (or perhaps why you might choose to accept it now).

We have to be cautious in our use of the HL method. Below, I propose a little counter-example. Look at the following HL result:

The HL result seems convincing and the URR is probably around 700 Gb and cumulative production is at 78.4% of the URR, terminal production decline seems inevitable. However, the production profile from my virtual country, which happens to have an infinite oil resource, is the following:

How effective is it to build a counter-example that relies on a physical impossibility - infinite oil?

I'd find your counter-example more compelling if it had a finite amount of oil but infinite? That's an irrelevant argument from the start.

Where have we seen those undulating plateaus before?
Sorry. Alzheimer's prevents one from recalling. :-)
Your missing the point, the infinite amount of oil in that example has nothing to do with the apparent convergence of the HL toward 700 Gb. I could have simulated an exponential decline to limit the URR, It would not have change the results. My point is that despite a relatively straightforward fit in the HL domain, my estimation is far from the reality.
Robert--

I think you make a mistake in getting so upset with the nasty replies to your posts. You shoud try just ignoring the ad hominens and deal with the issues raised, if there are any.

It's true that there's no excuse for abuse, but the cure is worse than the disease -- i.e. moderating, etc. That's the kiss of death for a site like this. There will always be borderline cases, sharply worded comments which one editor might allow, another not, and so on. It's better just to cultivate a blog climate or etiquette of sticking to the issues and ignoring or reprimanding teachable offenders.

Visitors to a blog soon learn to separate the wheat from the chaff. That's my opinion in any case.

Visitors to a blog soon learn to separate the wheat from the chaff.

I agree.  Maybe we'll have to go to more stringent moderation one day, but right now, the best thing to do is just ignore the ad hominems.  Most of us have been subject to personal attack here at one time or another.  It's part of the package, I'm afraid, and nothing to get worked up about.  

How does that saying go?  You shouldn't wrestle with pigs, because you get dirty and the pig enjoys it.

Robert, you are the kind of person I would want in a contributing editor on a site like this.  

First, you have a pair - by posting here you open yourself up to immediate criticism and rebuttal (unlike the print MSM or comavision like 60 minutes, 20/20 etc). Your message gets immediate feedback, pro and con, and because the feedback is usually posted immediately and in the heat of the moment it might not always be civil.

(Incidently, I think the motivations of the protesters should not be automatically questioned - e.g. most of the "yerginites" truly believe what they say and likely feel the same level of animosity towards those of us who are sane.  If their criticism is worthwhile it is dealt with.)

Second, all readers must remember we are a community with expertise in many different disciplines - just as the main authors of most of the books on the subject of Pealk Oil are from different disciplines.  We are all ignorant of some aspects of this subject - sometimes even about areas or data within our own discipline (and sometimes even of our own motivations - ancient critter-part of the brain stuff).  

All of the information in Robert's post and the responses was likely news to many people.  Or at least a damned entertaining review of it ;)

I would hope none of you regular 5-star contributers are ever intimidated by a mistake, or by some angry person's harsh words to the point of not posting.  

" I would call for a little more civility"

Please tell me that does not have to apply to CERA and Yergin etc. Please...