I call your attention to page 16 of this document:

Saudi Arabia’s Strategic Energy Imitative: Safeguarding Against Supply Disruptions

http://www.csis.org/media/csis/events/061109_omsg_presentation1.pdf

Though this document was produced by the Center for Strategic and International Studies in Washington DC on November 9th of 2006, it is based on a recently issued directive by the Saudi leadership.

The first statement on page 16 reads: The Kingdom’s average state of reserve depletion for all its fields is approximately 29%. Now file that away in the back of your mind for a moment.

The third statement reads: Without “maintain potential” drilling to make up for production, Saudi oil fields would have a natural decline rate of a hypothetical 8%. As Saudi Aramco has an extensive drilling program with a budget running in the billions of dollars, this decline is mitigated to a number close to 2%. Now keep in mind that Saudi is not talking about drilling in new fields to lower their decliner rate from 8% to 2%, they are talking about holding their existing fields to a 2% decline rate from the otherwise 8% they would experience without new drilling. The new fields are supposed to increase their production by a couple of million barrels per day by 2009.

I have serious problems with the above statement. Before a field reaches its peak, there is no decline due to production. Due to constraints of each well and the associated pipelines, a field will usually produce at its peak, or plateau, for several years before it goes into production decline. And when it reaches the decline state, that is the point where the capacity of each well or the total pipeline capacity is no longer the factor limiting production, but production is falling, this means that depletion is now the culprit. And when this happens it means that production from that field is usually well past its peak. Prudhoe Pay is the perfect example of this fact. The combined production from several fields usually produces the classic bell curve, production from a single field usually produces a bell curve with a flat top or plateau instead of the classic rounded dome.

Of course there are special cases, like Cantarell, that fits neither template. Cantarell had a rise, then a plateau at around 1 million barrels per day, then a sudden burst up to 2 million barrels per day due to a massive nitrogen injection program, then a sharp peak at around 2 mb/d followed by a catastrophic decline. But I digress.

What Saudi Arabia is saying here is that all their existing production fields have a decline rate of 8%. However with their extensive drilling program they hope to reduce this decline rate of these old giant fields to 2%. And by opening up new fields or more correctly, reopening old formerly closed fields they hope to increase production potential to an astounding 12,550,000 bp/d by 2009.

Does this make sense? If it does, why would not Pemex initiate an “extensive drilling program” and cut Cantarell’s decline rate to 2%. And should not BP do the same with Prudhoe Bay? An extensive drilling program should cut the decline rate of Prudhoe to at least 2%. Then there is the Forties Field in the North Sea, and Yibal in Oman that could dramatically benefit from such an extensive drilling program.

But first, let us let the truth sink in. Saudi Arabia is admitting that Ghawar, Safaniya, Abqaiq, Berri, Zuluf, Marjan and Abu Sa’fah, Saudi’s seven largest fields, whose combined production, until recently, totaled more than 8 mb/d, are declining at an average rate of 8% per year. But an extensive drilling program, (actually replacing their old vertical wells with new horizontal wells), they have so far been able to keep the decline rate to around 2%. And by opening the last remain area of Ghawar, the Haradh section in the very southern tip, and opening the Shaybah field, deep in the Empty Quarter, they even managed to increase production until mid 2005. But those horizontal super straws were really not able to create any more oil, just suck what was left out a little faster. This is what they did until even these horizontal wells began their inevitable decline.

So there you have it. IF Saudi can suck hard enough on their super straws and continue to hold the decline rate down in their old giant fields to 2% per year, and IF their planned projects come in on time and IF they produce at the rates planned then Saudi will increase her production capacity by almost 1.5 mb/d by 2009.

I don’t believe there is any chance of that happening. In fact, I think that their “extensive drilling program” has already petered out and the decline rate in their old giant fields is once again approaching 8%. In fact, due to their super straws pumping so much more oil out for the last decade or so, it is quite possible, nay, quite probable, that Saudi has already started a Cantarell type collapse.

And just a couple of other points. Obviously all of Saudi’s giant fields are not declining at exactly the same rate. Actually they are declining at a rate of between 5 and 12 percent according to Aramco Senior Vice President Abdullah Saif. The 8 percent figure is only an average of all the fields.

And last but not least, how, in face of all this decline, can they possibly say that they are only at 29 percent depletion? Well, it is simple math. If Saudi actually has, as they claim, 262 billion barrels of proven reserves, a figure that has remained virtually unchanged for almost two decades, and they have already produced around 107 billion barrels, then the math says they have produced only 29 percent of their reserves. Of course Middle East oil expert Dr. Samsam Bakhtiari says Saudi Reserves are actually in the 120 to 140 billion barrel range. My guess is that Dr. Bakhtiari is wildly optimistic.

Ron Patterson

Wow...excellent commentary here Darwinian. A VERY sobering assessment if all true.

"if all true"

It is not a matter of being true, moreso of being correct. When we discussed this document last month (and in Nov) i mentioned that readers should take care when reading Nawaf Obaid's text 'cuz his is the realm of KSA Security ... not geology.

Ron's pg16 includes glaring errors with "decline rate" and "depletion rate" used interchangeably. Therefore, one cannot use logic to interpret Ron's points.

"decline rate" refers to the drop in extraction rate as expressed in "mbd"

"depletion rate" refers to the drop in URR as expressed by "Gb"

In almost all cases, Obaid means depletion rate of reserves ... not monthly or annual production.

Going back to the presentation, it is typical KSA or Aramco rhetoric in their press releases and presentations to include how much field decline is happening each year. This one is no different.

On pg6, they openly admit that the "present" operating fields face the reality of an apparent 0.8-mbd/day decline rate. But not on a net basis. On their published production rate of 8.6-mbd, this equates to 9.3% YOY (apparent). It is clear that some older fields suck big time.

But if one turns to pg9, one sees that the planned closure of the older fields, unshuttering of dormant fields and opening of new fields brings to their operations a new decline of 0.5-mbd on proposed production of 10-mbd in 2009 (assuming maintenance of the 2.55-mbd surplus capacity). This equates to an apparent decline rate of 5% YOY in 2009 and drops to 4.6% by 2011.

Ron is neither right nor wrong. He is neither brilliant nor an idiot. Mistakes happen. This was one that confused many (but not all). I studied Geology and Economics in university. All of us at TOD have our specialties with which to contribute via formal Education or Schools of Hard Knocks.

Link does not seem to be working...Simmons is starting to look more and more like the "True Prophet"

Both the links he posted work for me.

Do you have Adobe installed? The first one is a PDF.

Reffering to an individual as a 'prophet' only reinforces the opinion in others that Peak Oil is more of a doomers cult then a scientific debate.

Hoth,
You obviously have me confused with somebody else. The Prophecy I was refering to was Simmons statements on the prospects for Saudi oil. As for "Peak Oil Theory", I find infathomable that someone cannot grasp the concept of a finite resource not having maximum in its extraction rate. Maybe if more than 20% of this country took a calculus course we would be in better shape. The only debate is a socio-econonic one on what the downside of the peak will entail. There is no scientific debate except for when the peak will occur.

Prophets are religious icons. Prophets announce prophecies. Prophets are idolized by overzealous religions fanatics. The doomers who refer to them as 'prophets' and their statements as 'prophecies' or religious fanatics.

And there we go again, someone is implying that I do not believe in Peak Oil. For the 10000000000th time, I'm a firm believer in PO. Any finite resource must reach a maximum exploitation rate and decline until nothing is less. A kindergarten student could probably figure that out. My question is only about the timing of the peak, and debunking ridiculous statements that are only backed up by religious fanaticism.

I have been reading this site since the summer of 2005 and I can tell you that I have not come across a "poster" more obnoxious than you. You seem to take joy in taking the comments of others out of context and misconstruing their meaning. I initially thought that it was your inexperience, but I have come to believe that you have a "true believers" mission of poisoning the pool every chance you get. This is one perfect example (among many). Any sensible person would understand that the term "True Prophet" used above was not used in the religious sense. Nor was the context in which it was used such that it could be construed that way. If you check any standard dictionary, you will see that the term "prophet" is also commonly used to mean "the chief spokesman of a movement or cause." There is nothing fanatical or overzealous in its use in this context. And there is nothing wrong with being a bit hyperbolic in calling Simmons a potential true prophet.

Hothgor.

Since you subscribe to Peak Oil, I would be interested in knowing what sort of time scale you think peak will arrive.

When do you think it will be?

Mudlogger,

I will loosely quote Hothgor:

Peak Oil will happen around 2015

Roger From the Netherlands

Fine

I can go with that.

"Prophet" also means "a person who foretells or predicts what is to come". Since Simmons predicted terminal decline for the Saudi fields some time ago, I'd say that he qualifies as a prophet, "by definition" you might say.
-pop

I can see it from Hothgor's point of view.

If you come to this website as a skeptic, you're going to read pro-peak comments with a hostile attitude.

If I went to the Scientology forums and saw something about Tom Cruise being a "prophet", I'd probably throw up a little in my mouth (at the poster). :)

That being said, I do believe it was more likely you were playing with words than any kind of religious adulation.

End of threadjack

I think that the problem is that many TOD posters have probably irreversably committed themselves via "prophesies of doom" to their friends and family to "kook-head" status if Peak Oil doom doesn't arrive very soon (or if mitigation works reasonably smoothly).

So their posts in TOD are increasingly anxious and anticipatory -- looking for *any* bad news that would confirm their vision. Skeptics arriving at TOD will pick up on this fervor. This defensiveness leaks over into quick attacks of any positive/mitigating news or evidence. The recent correction in the price of oil has probably also increased their apprehension about being thought of as "chicken little".

So if Freddy, Hothgor, or whoever present a semi-rational case that PO won't arrive for 3, 4, or 5 years or whatever -- that only makes them apoplectic at the thought that they will have to continue defending "doom" for that long. Peak MUST arrive soon for them! It's personal!

I think to be fair to most of us, there are people very highly respected and listened to by almost all here who do not believe we are at peak yet - Khebab and Robert Rapier are two outstanding examples. Many others such as myself are a bit on the fence and try to listen to everyone thoughtfully.

No, it isn't what they believe that is offensive, it is their offensive, demeaning (esp Hothgor), antagonistic, disdainful manner. Hothgor in particular doesn't tend to respond thoughtfully to counter argument. Instead he will take words and phrases, twist them and throw the back in a belittling manner, just baiting the other. Sometimes he's kind of ok, but then comes back with the old garbage and detracts not only from the blog but from whatever point he might have been trying to make.

I would further add the names of Chris Skrebowski, Euan Mearns, and Rembrandt Koppelar to those very highly respected and listened to contributors who do not believe we are at peak and contribute directly and indirectly to the discussion when it is conducted thoughfully and with respect.

Its funny now no one that you just listed considers me to be antagonistic, offensive or whatever the new flavor of the month name calling people seem to come up with. I'm vocal? Yes. Opinionated? Undoubtedly. Rude? Hardly! :laughs:

I don't know how you can speak for any of them.
If you don't understand my comments you should review your history on this site and think about it a little. You have been extremely rude on a number of occasions and it certainly hasn't gained you any credibility.

Funny how you CAN speak for them. If they have a problem with me, they can come out and say so.

I have a feeling that we will be waiting here for a LONG while :P

:laughs:

This is an example of misrepresenting the point and twisting the discussion - you just made my point for me. My point was that many here respect the named individuals who do not believe we are at peak yet and that therefore the issue is not whether we respect people with divergent views. Obviously we can respect them when they engage in reasonable debate.

Chris?

peakearl,

I think that if oil was back up to $75+, etc, etc, that folks would be less sensitive to "baiting". The antagonizing works only because folks are being defensive -- especially if that person is particularly smug.

My wider point is that it seems folks in TOD are allowing their anxiety to creep over into hyping things like "Bush Attacking Iran", "Hedge Funds Must Be Manipulating Oil Price", "Oil Inventory Number Are Fake", or whatever -- virtually confirming "kook-head" status. Skeptics arriving at TOD will see this.

Again, I believe this is driven by people here being personally committed by their prophesies of doom -- soon! Yet, the oil business is a slow moving one, and easy to implement mitigation just raises their anxiety by delaying and delaying doom. Egads! if they see another A123 battery improvement or the promise of the new CT drilling technology. "It'll never *ever* work..." they shrilly cry in kneejerk response.

Personally, I believe Peak is "now-ish" but that mitigation will work quite well for at least 5 years. The decline curves show only about 2% per year for the first 5 years after peak, and I think that U.S. drivers could easily cut back 10% without any doom. By that time perhaps GM will be shipping plug-in cars, etc. And a further wave of mitigation will start -- perhaps with a little pain or "micro-doom" mixed in. The prospect of defending "prophesies of doom" for THAT long has got to be daunting.

I think what you are saying is true for some. I am not a heavy doomer myself but am definately concerned. People may be sensitive, but you still get a much better discussion by trying to discuss facts and avoiding the personal.

It's more than some people to me. It's the general "atmosphere" of looking like fools. TOD is like a party that has gone on too long without the featured guest arriving -- "Mr. Doom".

EXACTLY wstephens. I think you hit the nail on the head.

One (of the many) things that puzzle me about posters here who claim we are peaking now is how can you ignore price? Price signals are just as important as all the cobbled-together data on oil fields, production, decline rates, etc. I would actually argue that it's a BETTER predictor because it's so transparent--the production-related data seems to be pretty suspect in many cases.

I don't think anyone's ignoring price.

Deffeyes, in his first book, predicted that price volatility would obscure the peak (if you look at price alone).

Dear Hothgor,

Lets continue our discussion:

I asked you the following:
1) When do you think peak oil will happen?
2) And what do you think decline rates in production and export will be?

You answered:
1) Around 2015
2) Around 2-3%, I look at total liquids, individual declines will be greater obviously.

I asked:
-Decline rates in conventional oil are in modernized oil fields between 8 and 15 %.
-Where will all the compensating extra oil comming from? Oilsands? Bio?

You answered:
Again, you need to look at the bigger picture. An individual field may decline at 8 to 15%. Hell, all the fields may decline at 8 to 15%.
But not all of the fields are exploited at the exact same time.
Because they are not exploited at the same time, the decline of one field is offset by the exploitation of another field(s). In regards to simple oil production in the US, this has resulted in approximately a 4% decline on average. However, we were not producing as much alternative fuels in the past as we are now attempting to do so in the present. In the end, I think the global production decline will come in at roughly 60% the rate that the US experienced, barring of course a catastrophic world war/nuclear exchange.

I asked:
Theoratically you're right ofcourse. But then; you need to have enough new fields to begin with to ofset the decline in existing fieds.
Where do you think the new fields are now, as country after country is declining?
Just tell me; where do you think this new oil will come from? Tell me the fields or the countries that will provide this extra oil??

You answered:
There are too many fields to list, and I doubt even WT could muster up enough tenacity to look them all up if should choose to do so. That being said, the general categories for these new fields are:
Undiscovered fields
Previously discovered economical fields that have not been exploited
Previously discovered uneconomical fields that have not been exploited
Simple reserve growth via improved technology or evaluations of existing fields :increases of the IOIP:
BTW, the Artic is estimated to have approximately 25% of the worlds total undiscovered petroleum resources in its oceans.

Now I ask you the following:

How much new oil will be comming from your stated sources?
a) Undiscovered fields
b) Previously discovered economical fields that have not been exploited
c) Previously discovered uneconomical fields that have not been exploited
d) Simple reserve growth via improved technology or evaluations of existing fields :increases of the IOIP:

Thank you for your answers!

Roger From The Netherlands

Ron,

Great post.

Excellent fact finding, logicaL assessments and connecting of dots!

I agree that the Saudis have likely maintained a high rate of barrels per day at the expense of future barrels. We have talked about this numerous times on TOD. There is a fixed amount of oil in a field (irregardless of reserve estimates) and pulling oil out faster up front leaves less oil to remove later.

High rates of extraction tell us nothing about reserves. They tell us instead a lot about the sophistication and maturity of the extraction technology used on the field.

NC, thanks for the kind words. Yes, Simmons makes the point very clear that faster extraction does not mean more oil. But Catton in "Overshoot" drives the point home. He coined the term "super-straws" and compared oil reserves to your bank account. He stated that thinking faster withdrawal of oil means more oil would be like thinking that becoming more efficient at writing withdrawal slips would actually put more money in your account.

Oh, by the way, there is no such word as "irregardless". Don't you just hate nitpickers! ;-)

Ron Patterson

Ron,

I like to be on the cutting edge of linguistics! I was using ain't long before it was accepted.

With regard to irregardless see a ,definition http://www.bartleby.com/61/84/I0238400.html. indicating people are trying to convey the use of two words in one.

I know it's wrong, but it sounds so good when you say it!

I believe that the Saudi asesertions do make sense. Ask yourself what controls the rising slope on the left side of the bell curve. It is not caused by the geology of an oil well. A well produces its maximum output on the first day it is drilled. It is all downhill after that. What creates the rising left side of the curve is the installation of additional infrastructure that enables more oil to be extracted, primarily it means drilling more wells. Each well in a field is either plateaued or in decline (even on the left side), but the field's output continues to grow because more wells are being added to the field.

Eventually, there are many more existing wells than fresh ones,and the field's output is dominated by the decline of all those existing wells, even while new ones are added. And finally there are no more opportunities for new wells and the field's decline accelerates down in a fully depleteing scenario.

The Saudis are simply saying that existing wells are declining at 8%, but enough new wells are being added to hold the entire field production to a 2% decline. There is no contradiction in that assertion. Cantarell, on the other hand, appears to be fully developed. It is in the final stage, where there are no opportunites for new wells or where their output is dominated by the decline of existing wells.

A well produces its maximum output on the first day it is drilled. It is all downhill after that.

This is not accurate. Production from a given well can rise and fall for a number or reasons in the years after it is put on line.

My point is that infrastructure controls the left slope of the bell curve and geology eventually controls the right slope.

I can think of one reason that a wells output would increase, water or gas injection. But that is still from infrastructure improvement, the equivalent of drilling more wells in the field. What are some other reasons why a wells output would increase over time?

The point is that the peak for a field is determined by how extensively that field is exploited, not by the fact that existing wells are in decline.

Re: Production Increases

The operator, and/or regulatory authority, could decide that the field could be safely produced at a higher rate. Also--stimulation, short radius horizontal holes off the main wellbore, etc.

Testudo, every well has a maximum production rate, provided the pressure is kept constant and high enough. This maximum production is based on the diameter of the well bore pipe. See illustration "H1" here:
http://wolf.readinglitho.co.uk/mainpages/hubbert.html

The wells in any individual field do not decrease in production simply because the well is pumping oil. The production of an individual well will start to drop when the field pressure starts to drop or until the water to oil mix or the gas to oil mix increases.

The primary reason an individual well starts to drop is the area of the reservoir drained by that individual well starts to decline in oil to extract. IF, the field is not entirely drained properly, then drilling new wells in between can increase the area drained and therefore increase production of the well. However that point, in the very old fields of Saudi Arabia, was likely reached many years ago. At any rate the horizontal christmas tree wells Saudi has been using for several years now covers the very old fields like a blanket.

Someone posted a link a few days ago showing how the Haradh area of Gahwar, the newest and last area of Ghawar to be brought on line, was covered with these christmas tree horizontal wells.

In the US, in our very old lower 48 fields, we use wellhead pumps that pump an average of about 20 barrels per day. In Saudi Arabia their wells produce an average of 4.15 thousand barrels per day and will continue to produce that amount until the pressure either drops or they water out. In Saudi, they use a different system. The wells are horizontal and water injection is used to keep up the pressure. The water is injected on the phriphery of the field and the oil is swept toward the wells. Well, that's the way it works in theory anyway.

Bottom line, wells in Saudi do not produce max immediately as you suggest. And they do not start to drop immediately after that as you suggest. They taper up, have a long plateau of constant production, then taper down due to depletion of the area they drain.

Ron Patterson

Nice brush stroking here, especially on this one:

But first, let us let the truth sink in. Saudi Arabia is admitting that Ghawar, Safaniya, Abqaiq, Berri, Zuluf, Marjan and Abu Sa’fah, Saudi’s seven largest fields, whose combined production, until recently, totaled more than 8 mb/d, are declining at an average rate of 8% per year. But an extensive drilling program, (actually replacing their old vertical wells with new horizontal wells), they have so far been able to keep the decline rate to around 2%. And by opening the last remain area of Ghawar, the Haradh section in the very southern tip, and opening the Shaybah field, deep in the Empty Quarter, they even managed to increase production until mid 2005. But those horizontal super straws were really not able to create any more oil, just suck what was left out a little faster. This is what they did until even these horizontal wells began their inevitable decline.

They didn't admit that any one of those fields was in decline. They only said that their total oil productoin, without field maintenance, would decline at 8%, and 2% with proper managment. You can come up with any combination of those fields to meet that criterior. Ghawar could be increasing, the rest declining. Ghawar steady, the rest declining. Ghawar declining, the rest steady, and Ghawar declining, the rest increasing slowly.

You need to have a field by field analysis to have any credibility on this issue. Pure speculation disguised by clumping several fields into one broad category doesn't hold water.

They didn't admit that any one of those fields was in decline. They only said that their total oil productoin, without field maintenance, would decline at 8%, and 2% with proper managment. You can come up with any combination of those fields to meet that criterior.

Pure bullsit Hothgor. Read the following very carefully:

http://www.eia.doe.gov/emeu/cabs/saudi.html

One challenge for the Saudis in achieving this objective is that their existing fields sustain 5 percent-12 percent annual "decline rates," (according to Aramco Senior Vice President Abdullah Saif, as reported in Petroleum Intelligence Weekly and the International Oil Daily) meaning that the country needs around 500,000-1 million bbl/d in new capacity each year just to compensate.

The smallest decline is 5%, the greatest decline is 12%. The average is 8%. I pointed out that in the post. Are you not able to read? No one is lumping anything together.

Ron Patterson

They did not say that 'every single field we have independently has a 5 to 12% decline, they said their FIELDS as in the total sum of their oil producing fields, has a combined decline rate without doing anything of around 8%. That can easily mean that certain fields are increasing while others are decreasing. If they said, Ghawar has a 3% decline, X has a 12% decline, and total its a 5% decline, you might have a point.

They didn't. They said their FIELDS.

You are just playing with words to make your point, don't persist and make yourself look foolish too.

They're sustaining a 5% to 12% decline.

They're trying to maintain a 5% to 12% decline. Ouch.

Anyway you cut it, percentages are percentages, and that sounds pretty bad.

I think Hothgor has right interpretation of that sentence. It's too ambigious to nail down.

For example, field A could be increasng total production at 12%, while field B (Ghawar) could be dropping at 20%. That's still an 8% sustained decline.

They did not say that 'every single field we have independently has a 5 to 12% decline, they said their FIELDS as in the total sum of their oil producing fields, has a combined decline rate without doing anything of around 8%.

Hothgor, you are in serious need of a reading comprehension course. What they said, copied and pasted:

One challenge for the Saudis in achieving this objective is that their existing fields sustain 5 percent-12 percent annual "decline rates," (according to Aramco Senior Vice President Abdullah Saif, as reported in Petroleum Intelligence Weekly and the International Oil Daily) meaning that the country needs around 500,000-1 million bbl/d in new capacity each year just to compensate.

http://www.eia.doe.gov/emeu/cabs/saudi.html

Their existing fields have a 5 to 12 percent decline rate. All these fields have been in production for over half a century. At least one of these fields is declining by only 5 percent, and at least one of these fields is declining by 12 percent per year. The rest are somewhere in between with the average at 8 percent.

The Petroleum Intelligence Weekly and the EIA and the International Oil Daily concluded that they need 500,000 to 1 million barrels per day of new capacity each year just to stay even. Hothgor says that is not so. Well, this is one time I agree with the EIA, the International Oil Daily and Petroleum Intelligence Weekly, wee all believe the word of the Senior Aramco Vice President. I also belive that Hothgor is full of crap and cannot understand plain English. And I believe that the above orginizations would concur.

Ron Patterson

Hothgar, no need to insult Ron who has a very good understanding of engineering principles. But, I'd like to note that he's an engineer, and the Saudi release was run through a poblic relations agent and a set of guys very aware of the political and economic implications of any discussion of decline in production. So you are very probably correct in your semantic analysis. Those guys are liars and intend to confuse the truth, and I've read Ron long enough to think he's honest and an expert in production, and a guy who makes a real effort.

You need to re-re-read the quote. It says :'One challenge for the Saudis in achieving this objective is that their existing fields sustain 5 percent-12 percent annual "decline rates," '

They are talking about 'decline rates' being between 5% and 12%, not a 'decline rate' between 5% and 12%. This means that each of the fields being referred to, ie. the 'existing fields', has a decline rate between 5% and 12%. I am afraid there is no other way to interpret this quote.

If the quote is right, then clearly all of the major existing fields are in decline, as Ron said.

Agreed, Hothgar. Patterson calls your analysis "bullshit". His arsenal of defences is bankrupt. He's down to the ad hominems. This is the third go around for this same CSIS story. I explained it all to Ron after its release. I've repeated the link three times. He seems to be off his meds for his jr-alz again. Commonplace for him.

And especially since he's been outed for his failed 2003 forecast for a "likely" Peak in 2004, but for sure in 2005. His desperation to come thru with "the big one" keeps eluding him. His friends, family, co-workers, neighbours, co-berthers at the sailing club ... all think he's a wacko. And he needs redemption. A hail mary pass.

But a newbie resurrecting CSIS and its rehash does nothing. KSA and Aramco statements have been crystal clear on their annual shortfall in almost every press release or presentation for 36 months. The more transparent they are, the more idiots like ron get frustrated. Ron's biggest problem is that after many attempts he still does not understand the difference betw capacity and production, betw decline and depletion.

KSA and Aramco have been clear about this shortfall by quoting it in percentage terms or absolute mbd figures since early 2004. They are careful to almost always deduct such losses from future production capacity forecasts.

There was nothing new when we discussed this in November. Nor December. And not today...

In spite of being too harsh for my taste, I find Freddy's comments interesting, but I don't see how he is allowed to insult ("idiots like ron") others posters and not being banned. Other posters have been baned, why Freddy hasn't?

I see a lot of danger for TOD if this kind of behaviour is not stopped, and it is a shame for those posters that bring matters to the personal territory, you should know better! This is not a trash TV talk show! And don't say that "I didn't started the verbal abuse", yours is the responsability of not letting the amount of personal attacks grow!

I am an old reader of TOD, and I am very sad about the way things seem to go here lately.

I absolutely agree. I am sick and tired of these people taking over every thread with their silliness. Characteristics of trolls (entirely MO):
1. make provocative statements, twist words to get responses
2. make the same statements over and over
3. pick "targets," and harass them continually
4. post continually, on every subject, whether they know anything about it or not
5. insult gratuitously, and often
6. are impervious to hints, suggestions, threats of banning, exasperation, or anything else
7. apparently have all day and night to dominate TOD posts
8. never recognize that THEY ARE TROLLS (in fact, decry the very behavior they are engaging in, often in the same post);, and one more:
9. will eventually go away IF IGNORED.

I'd venture to say we'd have 90% agreement or higher on who these people are among TOD members...that's a hint.

Talking about ad hominem: "all think he's a wacko", "the more idiots like ron get frustrated"...

Some more: suppose all OLD Saudi old fields decline completely until 2011 and only capacity additions and new expansions survive. This is a very pessimistic assumption. Then, Saudi Arabia would have 6 M bpd production. (3 M new up to 2009, 1.55 upgrades 2008/09 and 1.4 new by 2011).

More realistic assumption is that Saudi Arabia will have the same production in 2011 as in 2006, but there could very well be an expansion of production as Ghawar is a very complex field parts of which may deplete at a slow rate. Agreed that 12.5 M bpd is unrealistic.

Ron

Interesting points you make but
can you go over the math with me?
29% of 262 billion is 76 billion.
107 billion is 40.8 % of 262 billion.

Have I missed something?

Interesting points you make but
can you go over the math with me?
29% of 262 billion is 76 billion.
107 billion is 40.8 % of 262 billion.

Have I missed something?

Yes Roll, you have definitely missed something. 262 billion barrels is what they claim that that they have left. 107 billion barrels is what they have already produced. Total the two and you get 369 billion barrels. If they have already produced 107 billion barrels out of 369 billion barrels, and have 262 billion barrels left, then they have produced 29% of their total oil.

Simple math, right? But of course they have nowhere close to having 262 billion barrels left. My guess is they have about 70 billion barrels left so they are at about 60% of UUR.

Ron Patteson

P1 Reserves are 260-Gb
P2 Reserves are 32-Gb
P3 Reserves are 71-Gb
Discovered sub-commercial resource is 238-Gb
Undiscoverd recoverable resource is 200-Gb
Past production to 04/12/31 is 108-Gb

The article refers to accum production as a ratio to P1 + accum prod:
108/(260+108)
108/368 = 29%

If we use the more common accum consumption over P1+P2+past, it is less significant. If we use the most oft used ratio of past over P1+P2+P3, it is even less signifiant.

then there is the TOD method of past/URR (add all six)... which is a blip in the big picture.

When KSA's status is compared in the same fashion as most nations or regions, it is plain to see how ludicrous are discussions of KSA decline.