Monday, 04 March 2013 15:47

US oil production: Don't believe the hype

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Off the World News Stream:

US oil production: Don't believe the hype

"Production remains well below the peak achieved in 1970 and below a secondary peak—a lower high, if you will—which resulted from the ramp up of production in Alaska. But, as the graph shows, after that it was relentlessly downhill until just recently.

It is true that a new form of hydraulic fracturing—high-volume slick-water hydraulic fracturing—has made available sources of oil not previously accessible. But is it also true that the industry’s hyperbole doesn’t square with the evidence. The U.S. Energy Information Administration’s (EIA) latest estimate of technically recoverable oil from so-called tight oil deposits—the ones suitable for hydraulic fracturing—is 33 billion barrels (see below). It sounds like a lot. But, in fact, it would only supply the United States for about 6½ years. Not bad; but not a world-changing number, especially when you consider that all oil goes onto the worldwide market where that amount would last a little over a year."

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