161 comments on DrumBeat: December 21, 2007
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161 comments on DrumBeat: December 21, 2007
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GAIA Host Collective
The Gathering Net Export Storm
Increasing signs of problems with Russian oil production and net exports this year.
The EIA shows crude oil production to basically be flat since 10/06 (between 9.3 and 9.5 mbpd), and more and more investment banks are warning of problems with Russian production.
I received an e-mail from an energy analyst to the effect that preliminary Russian data show a pretty good drop in production and exports for November.
And now, the Russians themselves are forecasting lower exports (note that these are gross, not net exports).
http://www.kommersant.com/p838621/Crude_export_decline/
Dec. 21, 2007
Russia Turns Down the Crude Tap a Bit
Putin attends opening of Toyota's new St. Petersburg plant
http://en.rian.ru/russia/20071221/93651267.html
Here is what I don't get.... if indeed Russian energy industry insiders know/expect Russia to be peaking in oil imminently, with future declines steep, then why is Time's Man of the Year (and now supposedly the richest man in Europe) encouraging the increase of consumption in his own country, while at the same time also promoting Russia as a export savior (source of energy) to a great deal of Eurasia? Is he anticipating that NG/NGL can more than make up for the loss of crude?
I suspect that your premise is wrong. I suspect that they believe that the current forecast of a small decline in exports is a result of what they consider to be a short term drop in production combined with the ongoing rapid increase in consumption.
Denial is rampant in oil producing areas.
I have frequently described the comments by the Texas Stage Geologist (in response to a question from me in 2005, 33 years after Texas peaked) that while Texas may not be able to equal its peak oil production, we could, with the use of "better technology," significantly increase our production.
Re: Sakhalin sees Exxon oil output falling in 2008 (posted up top)
Consider this report in light of the following observation about Sakhalin production:
http://uk.reuters.com/article/oilRpt/idUKL1864486120071018
RenCap again cuts Russian
oil output forecast
Thu Oct 18, 2007
MOSCOW, Oct 18 (Reuters)
I've been following a Russian website that publishes their crude oil production on a daily basis. Their oil production is expressed in tons. For all of December so far, it has been in an extremely narrow range of 1341-1349 thousand tons per day. Using 7.33 barrels of oil per ton, that translates to over 9.8 million barrels per day. However, I'm not sure 7.33 is the right conversion factor - there are several different ones on the Internet. Does anyone know anything about this?
NASAguy, I, and I know several others, have been looking for such a web site. Could you please post the link.
Thanks a million,
Ron Patterson
Ron, You are welcome. Here it is:
http://www.riatec.ru/en/shownews.php?id=37182&sha=1&sfa=1&RiatecSess=461...
It depends on the gravity of the crude. I don't know what the average number is for Russia. The advantage of using tons is that the weight before and after refining is pretty much the same, whereas the volume (barrels) increases after refining. However, when using barrels you don't have to worry about the API gravity.
In any case, are they talking about C+C or total liquids?
BTW, good article I had forgotten about, with pertinent quotes:
http://www.energybulletin.net/16745.html
Published on 3 Jun 2006 by Energy Bulletin. Archived on 3 Jun 2006.
Confessions of a statistician
by Sohbet Karbuz
(former head of Non-OECD Energy Statistics Section of the International Energy Agency)
NASAguy thanks a million for the link. Now I can answer Jeffery's question.
It is total liquids:
Ron Patterson
For what it's worth, I interpreted one of your excerpts incorrectly until I read it in context:
The ex-IEA guy isn't saying the EIA data is better than IEA data (which is how I originally interpreted it), but rather appears to be saying that EIA's monthly data is better than EIA or API's weekly data, but comes out much later.
Just a heads-up in case anyone misreads that like I did.
What are these conversion factors? Might they account for the divergence between EIA and IEA figures?
the conversion from api gravity to specific gravity is:
spg= 141.5/(131.5 + api), a metric tonne is 2204.6 (us)lbs.
and a barrel (42 gallons) of water weights 350.5 lbs. the conversion is bbls/tonne = 6.29/spg or bbls/tonne = 6.29*(131.5 + api)/141.5.
so your conversion of 7.33 bbls/tonne would be correct for an api gravity of 33.4 degrees.
i think you mean tonnes (metric) i.e. 1000 kg
I think that there are two key points here: (1) The Russians themselves are forecasting lower exports and (2) They felt compelled to urge people not to panic.
My "Assume the Opposite" theory is, regarding oil production forecasts, peak oil, etc. by public officials, that one should generally--but not always--assume that the opposite of what they are saying is the truth.