Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
GAO Report to Congressional Requesters
Conclusions
The prospect of a peak in oil production presents problems of global proportion whose consequences will depend critically on our preparedness. The consequences would be most dire if a peak occurred soon, without warning, and were followed by a sharp decline in oil production because alternative energy sources, particularly for transportation, are not yet available in large quantities. Such a peak would require sharp reductions in oil consumption, and the competition for increasingly scarce energy would drive up prices, possibly to unprecedented levels, causing severe economic damage. While these consequences would be felt globally, the United States, as the largest consumer of oil and one of the nations most heavily dependent on oil for transportation, may be especially vulnerable among the industrialized nations of the world.
In the longer term, there are many possible alternatives to using oil, including using biofuels and improving automotive fuel efficiency, but these alternatives will require large investments, and in some cases, major changes in infrastructure or break-through technological advances. In the past, the private sector has responded to higher oil prices by investing in alternatives, and it is doing so now. Investment, however, is determined largely by price expectations, so unless high oil prices are sustained, we cannot expect private investment in alternatives to continue at current levels. If a peak were anticipated, oil prices would rise, signaling industry to increase efforts to develop alternatives and consumers of energy to conserve and look for more energy-efficient products.
Federal agencies have programs and activities that could be directed toward reducing uncertainty about the timing of a peak in oil production, and agency officials have stated the value in doing so. In addition, agency efforts to stimulate the development and adoption of alternatives to oil use could be increased if a peak in oil production were deemed imminent.
While public and private responses to an anticipated peak could mitigate the consequences significantly, federal agencies currently have no coordinated or well-defined strategy either to reduce uncertainty about the timing of a peak or to mitigate its consequences. This lack of a strategy makes it difficult to gauge the appropriate level of effort or resources to commit to alternatives to oil and puts the nation unnecessarily at risk.
Source: GAO Report to Congressional Requesters
February 2007
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
http://www.gao.gov
GAO Report to Congressional Requesters
Conclusions
The prospect of a peak in oil production presents problems of global proportion whose consequences will depend critically on our preparedness. The consequences would be most dire if a peak occurred soon, without warning, and were followed by a sharp decline in oil production because alternative energy sources, particularly for transportation, are not yet available in large quantities. Such a peak would require sharp reductions in oil consumption, and the competition for increasingly scarce energy would drive up prices, possibly to unprecedented levels, causing severe economic damage. While these consequences would be felt globally, the United States, as the largest consumer of oil and one of the nations most heavily dependent on oil for transportation, may be especially vulnerable among the industrialized nations of the world.
In the longer term, there are many possible alternatives to using oil, including using biofuels and improving automotive fuel efficiency, but these alternatives will require large investments, and in some cases, major changes in infrastructure or break-through technological advances. In the past, the private sector has responded to higher oil prices by investing in alternatives, and it is doing so now. Investment, however, is determined largely by price expectations, so unless high oil prices are sustained, we cannot expect private investment in alternatives to continue at current levels. If a peak were anticipated, oil prices would rise, signaling industry to increase efforts to develop alternatives and consumers of energy to conserve and look for more energy-efficient products.
Federal agencies have programs and activities that could be directed toward reducing uncertainty about the timing of a peak in oil production, and agency officials have stated the value in doing so. In addition, agency efforts to stimulate the development and adoption of alternatives to oil use could be increased if a peak in oil production were deemed imminent.
While public and private responses to an anticipated peak could mitigate the consequences significantly, federal agencies currently have no coordinated or well-defined strategy either to reduce uncertainty about the timing of a peak or to mitigate its consequences. This lack of a strategy makes it difficult to gauge the appropriate level of effort or resources to commit to alternatives to oil and puts the nation unnecessarily at risk.
Source: GAO Report to Congressional Requesters
February 2007
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
http://www.gao.gov
GAO Report to Congressional Requesters
Conclusions
The prospect of a peak in oil production presents problems of global proportion whose consequences will depend critically on our preparedness. The consequences would be most dire if a peak occurred soon, without warning, and were followed by a sharp decline in oil production because alternative energy sources, particularly for transportation, are not yet available in large quantities. Such a peak would require sharp reductions in oil consumption, and the competition for increasingly scarce energy would drive up prices, possibly to unprecedented levels, causing severe economic damage. While these consequences would be felt globally, the United States, as the largest consumer of oil and one of the nations most heavily dependent on oil for transportation, may be especially vulnerable among the industrialized nations of the world.
In the longer term, there are many possible alternatives to using oil, including using biofuels and improving automotive fuel efficiency, but these alternatives will require large investments, and in some cases, major changes in infrastructure or break-through technological advances. In the past, the private sector has responded to higher oil prices by investing in alternatives, and it is doing so now. Investment, however, is determined largely by price expectations, so unless high oil prices are sustained, we cannot expect private investment in alternatives to continue at current levels. If a peak were anticipated, oil prices would rise, signaling industry to increase efforts to develop alternatives and consumers of energy to conserve and look for more energy-efficient products.
Federal agencies have programs and activities that could be directed toward reducing uncertainty about the timing of a peak in oil production, and agency officials have stated the value in doing so. In addition, agency efforts to stimulate the development and adoption of alternatives to oil use could be increased if a peak in oil production were deemed imminent.
While public and private responses to an anticipated peak could mitigate the consequences significantly, federal agencies currently have no coordinated or well-defined strategy either to reduce uncertainty about the timing of a peak or to mitigate its consequences. This lack of a strategy makes it difficult to gauge the appropriate level of effort or resources to commit to alternatives to oil and puts the nation unnecessarily at risk.
Source: GAO Report to Congressional Requesters
February 2007
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
http://www.gao.gov
GAO Report to Congressional Requesters
Conclusions
The prospect of a peak in oil production presents problems of global proportion whose consequences will depend critically on our preparedness. The consequences would be most dire if a peak occurred soon, without warning, and were followed by a sharp decline in oil production because alternative energy sources, particularly for transportation, are not yet available in large quantities. Such a peak would require sharp reductions in oil consumption, and the competition for increasingly scarce energy would drive up prices, possibly to unprecedented levels, causing severe economic damage. While these consequences would be felt globally, the United States, as the largest consumer of oil and one of the nations most heavily dependent on oil for transportation, may be especially vulnerable among the industrialized nations of the world.
In the longer term, there are many possible alternatives to using oil, including using biofuels and improving automotive fuel efficiency, but these alternatives will require large investments, and in some cases, major changes in infrastructure or break-through technological advances. In the past, the private sector has responded to higher oil prices by investing in alternatives, and it is doing so now. Investment, however, is determined largely by price expectations, so unless high oil prices are sustained, we cannot expect private investment in alternatives to continue at current levels. If a peak were anticipated, oil prices would rise, signaling industry to increase efforts to develop alternatives and consumers of energy to conserve and look for more energy-efficient products.
Federal agencies have programs and activities that could be directed toward reducing uncertainty about the timing of a peak in oil production, and agency officials have stated the value in doing so. In addition, agency efforts to stimulate the development and adoption of alternatives to oil use could be increased if a peak in oil production were deemed imminent.
While public and private responses to an anticipated peak could mitigate the consequences significantly, federal agencies currently have no coordinated or well-defined strategy either to reduce uncertainty about the timing of a peak or to mitigate its consequences. This lack of a strategy makes it difficult to gauge the appropriate level of effort or resources to commit to alternatives to oil and puts the nation unnecessarily at risk.
Source: GAO Report to Congressional Requesters
February 2007
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
http://www.gao.gov
World Oil Reserves, OPEC and non-OPEC, 2006
Real and Nominal Oil Prices, 1950-2006
World Oil Reserves, OPEC and non-OPEC, 2006
Real and Nominal Oil Prices, 1950-2006
Real and Nominal Oil Prices, 1950-2006
Real and Nominal Oil Prices, 1950-2006
Excerpts from new GAO report...........
Enhanced Oil Recovery
Enhanced oil recovery (EOR) refers to the third stage of oil production, whereby sophisticated techniques are used to recover remaining oil from reservoirs that have otherwise been exhausted through primary and secondary recovery methods. During EOR, heat (such as steam), gases (such as carbon dioxide (CO2)), or chemicals are injected into the reservoir to improve fluid flow. Thermal and gas injection techniques account for almost all EOR activity in the United States, with CO2 injection being the technique that is currently attracting the most commercial interest. In the United States, EOR methods are currently being applied in a variety of regions, although most CO2 EOR occurs in the Permian Basin in Texas. Most EOR efforts in the United States are currently managed by small, independent operators. Globally, EOR has been introduced in a number of countries, but North America is estimated to represent over half of all global EOR production.
Key Costs
• Costs associated with EOR production vary by reservoir, but reported marginal costs for oil recovery using EOR can range from $1.42 per barrel to $30 per barrel.
• Key capital costs include new drills, reworking of existing drills, reconfiguring gathering systems, and modification of the injection plant and other surface facilities.
Potential Production
• EOR currently contributes approximately 12 percent to the U.S. production of oil.
• EOR is projected to increase average recovery rates in reservoirs from 30 percent to 50 percent.
• Upper-end estimates of EOR’s future recovery potential in the United States include the following: 1.0 million barrels per day by 2015 and 2.5 million barrels per day by 2025.
Readiness
• Thermal, gas, and chemical injection technologies are currently commercially available.
• Key areas for further development exist, including sweep efficiency and water shut-off methods.
Key Challenges
• Key challenges facing the development of EOR include the following: (1) a lack of industry-accepted, economical fluid injection systems; (2) a reliance on out-of-date practices and limited data due to lack of familiarity with state-of-the-art imaging and reluctance to risk investment in technologies; and (3) unwillingness on the part of some operators to assume the risks associated with EOR.
Current Federal Involvement
• DOE is involved in several industry consortia and individual programs, designed to develop EOR, including conducting research and development and educating small producers about EOR.
http://www.gao.gov/new.items/d07283.pdf
Excerpts from new GAO report...........
Enhanced Oil Recovery
Enhanced oil recovery (EOR) refers to the third stage of oil production, whereby sophisticated techniques are used to recover remaining oil from reservoirs that have otherwise been exhausted through primary and secondary recovery methods. During EOR, heat (such as steam), gases (such as carbon dioxide (CO2)), or chemicals are injected into the reservoir to improve fluid flow. Thermal and gas injection techniques account for almost all EOR activity in the United States, with CO2 injection being the technique that is currently attracting the most commercial interest. In the United States, EOR methods are currently being applied in a variety of regions, although most CO2 EOR occurs in the Permian Basin in Texas. Most EOR efforts in the United States are currently managed by small, independent operators. Globally, EOR has been introduced in a number of countries, but North America is estimated to represent over half of all global EOR production.
Key Costs
• Costs associated with EOR production vary by reservoir, but reported marginal costs for oil recovery using EOR can range from $1.42 per barrel to $30 per barrel.
• Key capital costs include new drills, reworking of existing drills, reconfiguring gathering systems, and modification of the injection plant and other surface facilities.
Potential Production
• EOR currently contributes approximately 12 percent to the U.S. production of oil.
• EOR is projected to increase average recovery rates in reservoirs from 30 percent to 50 percent.
• Upper-end estimates of EOR’s future recovery potential in the United States include the following: 1.0 million barrels per day by 2015 and 2.5 million barrels per day by 2025.
Readiness
• Thermal, gas, and chemical injection technologies are currently commercially available.
• Key areas for further development exist, including sweep efficiency and water shut-off methods.
Key Challenges
• Key challenges facing the development of EOR include the following: (1) a lack of industry-accepted, economical fluid injection systems; (2) a reliance on out-of-date practices and limited data due to lack of familiarity with state-of-the-art imaging and reluctance to risk investment in technologies; and (3) unwillingness on the part of some operators to assume the risks associated with EOR.
Current Federal Involvement
• DOE is involved in several industry consortia and individual programs, designed to develop EOR, including conducting research and development and educating small producers about EOR.
http://www.gao.gov/new.items/d07283.pdf
Excerpts from new GAO report...........
Enhanced Oil Recovery
Enhanced oil recovery (EOR) refers to the third stage of oil production, whereby sophisticated techniques are used to recover remaining oil from reservoirs that have otherwise been exhausted through primary and secondary recovery methods. During EOR, heat (such as steam), gases (such as carbon dioxide (CO2)), or chemicals are injected into the reservoir to improve fluid flow. Thermal and gas injection techniques account for almost all EOR activity in the United States, with CO2 injection being the technique that is currently attracting the most commercial interest. In the United States, EOR methods are currently being applied in a variety of regions, although most CO2 EOR occurs in the Permian Basin in Texas. Most EOR efforts in the United States are currently managed by small, independent operators. Globally, EOR has been introduced in a number of countries, but North America is estimated to represent over half of all global EOR production.
Key Costs
• Costs associated with EOR production vary by reservoir, but reported marginal costs for oil recovery using EOR can range from $1.42 per barrel to $30 per barrel.
• Key capital costs include new drills, reworking of existing drills, reconfiguring gathering systems, and modification of the injection plant and other surface facilities.
Potential Production
• EOR currently contributes approximately 12 percent to the U.S. production of oil.
• EOR is projected to increase average recovery rates in reservoirs from 30 percent to 50 percent.
• Upper-end estimates of EOR’s future recovery potential in the United States include the following: 1.0 million barrels per day by 2015 and 2.5 million barrels per day by 2025.
Readiness
• Thermal, gas, and chemical injection technologies are currently commercially available.
• Key areas for further development exist, including sweep efficiency and water shut-off methods.
Key Challenges
• Key challenges facing the development of EOR include the following: (1) a lack of industry-accepted, economical fluid injection systems; (2) a reliance on out-of-date practices and limited data due to lack of familiarity with state-of-the-art imaging and reluctance to risk investment in technologies; and (3) unwillingness on the part of some operators to assume the risks associated with EOR.
Current Federal Involvement
• DOE is involved in several industry consortia and individual programs, designed to develop EOR, including conducting research and development and educating small producers about EOR.
http://www.gao.gov/new.items/d07283.pdf
Excerpts from new GAO report...........
Enhanced Oil Recovery
Enhanced oil recovery (EOR) refers to the third stage of oil production, whereby sophisticated techniques are used to recover remaining oil from reservoirs that have otherwise been exhausted through primary and secondary recovery methods. During EOR, heat (such as steam), gases (such as carbon dioxide (CO2)), or chemicals are injected into the reservoir to improve fluid flow. Thermal and gas injection techniques account for almost all EOR activity in the United States, with CO2 injection being the technique that is currently attracting the most commercial interest. In the United States, EOR methods are currently being applied in a variety of regions, although most CO2 EOR occurs in the Permian Basin in Texas. Most EOR efforts in the United States are currently managed by small, independent operators. Globally, EOR has been introduced in a number of countries, but North America is estimated to represent over half of all global EOR production.
Key Costs
• Costs associated with EOR production vary by reservoir, but reported marginal costs for oil recovery using EOR can range from $1.42 per barrel to $30 per barrel.
• Key capital costs include new drills, reworking of existing drills, reconfiguring gathering systems, and modification of the injection plant and other surface facilities.
Potential Production
• EOR currently contributes approximately 12 percent to the U.S. production of oil.
• EOR is projected to increase average recovery rates in reservoirs from 30 percent to 50 percent.
• Upper-end estimates of EOR’s future recovery potential in the United States include the following: 1.0 million barrels per day by 2015 and 2.5 million barrels per day by 2025.
Readiness
• Thermal, gas, and chemical injection technologies are currently commercially available.
• Key areas for further development exist, including sweep efficiency and water shut-off methods.
Key Challenges
• Key challenges facing the development of EOR include the following: (1) a lack of industry-accepted, economical fluid injection systems; (2) a reliance on out-of-date practices and limited data due to lack of familiarity with state-of-the-art imaging and reluctance to risk investment in technologies; and (3) unwillingness on the part of some operators to assume the risks associated with EOR.
Current Federal Involvement
• DOE is involved in several industry consortia and individual programs, designed to develop EOR, including conducting research and development and educating small producers about EOR.
http://www.gao.gov/new.items/d07283.pdf
GAO Report to Congressional Requesters
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
February 2007
82 page GAO report, great stuff:
http://www.gao.gov/new.items/d07283.pdf
Audio dicussion about above report:
http://www.financialsense.com/Experts/2007/Simmons.html
GAO Report to Congressional Requesters
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
February 2007
82 page GAO report, great stuff:
http://www.gao.gov/new.items/d07283.pdf
Audio dicussion about above report:
http://www.financialsense.com/Experts/2007/Simmons.html
GAO Report to Congressional Requesters
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
February 2007
82 page GAO report, great stuff:
http://www.gao.gov/new.items/d07283.pdf
Audio dicussion about above report:
http://www.financialsense.com/Experts/2007/Simmons.html
GAO Report to Congressional Requesters
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
February 2007
82 page GAO report, great stuff:
http://www.gao.gov/new.items/d07283.pdf
Audio dicussion about above report:
http://www.financialsense.com/Experts/2007/Simmons.html
Great post. Here is the hard copy of discussion.
GAO Report to Congressional Requesters
CRUDE OIL
Uncertainty about Future Oil Supply Makes It Important to Develop a Strategy for Addressing a Peak and Decline in Oil Production
February 2007
82 page GAO report:
http://www.gao.gov/new.items/d07283.pdf
By the way, great DD today Mr. Wave.
Low cost upgrade from pinksheets..........
http://www.otcqx.com/otcqx/home
http://www.otcqx.com/otcqx/docs/OTCQXBrochure.pdf
Low cost upgrade from pinksheets..........
http://www.otcqx.com/otcqx/home
http://www.otcqx.com/otcqx/docs/OTCQXBrochure.pdf
Low cost upgrade from pinksheets..........
http://www.otcqx.com/otcqx/home
http://www.otcqx.com/otcqx/docs/OTCQXBrochure.pdf
Low cost upgrade from pinksheets..........
http://www.otcqx.com/otcqx/home
http://www.otcqx.com/otcqx/docs/OTCQXBrochure.pdf
Definitely seems that chart-wise a reversal is upon us.
That coupled with the impending news could really get things
going. Looking forward to next week.
Dragonfly Doji: A Doji where the open and close price are at the high of the day. Like other Doji days, this one normally appears at market turning points.
We closed out the week with a combination daily dragonfly doji and a weekly dragonfly doji. Weekly chart below:
US Oil Production Data - Coverage Map
US Oil Production Data - Coverage Map
US Oil Production Data - Coverage Map
US Oil Production Data - Coverage Map
Kansas Crude Oil Price 5 Year History
Kansas Crude Oil Price 5 Year History
Divestco USA - State Information Grid - as of March 22, 2007
More stuff here about oil/gas wells by State than I've come across yet. Good stuff!!
http://www.petrodatasource.com/stateinfo.asp
Divestco USA - State Information Grid - as of March 22, 2007
More stuff here about oil/gas wells by State than I've come across yet. Good stuff!!
http://www.petrodatasource.com/stateinfo.asp
Divestco USA - State Information Grid - as of March 22, 2007
More stuff here about oil/gas wells by State than I've come across yet. Good stuff!!
http://www.petrodatasource.com/stateinfo.asp
Divestco USA - State Information Grid - as of March 22, 2007
More stuff here about oil/gas wells by State than I've come across yet. Good stuff!!
http://www.petrodatasource.com/stateinfo.asp
Baker-Hughes Rig Counts
U.S. Annual Averages by State 1987 - 2006
http://www.bakerhughes.com/investor/rig/excel/1987_2006_ANAVBYST.XLS
Baker-Hughes Rig Counts
U.S. Annual Averages by State 1987 - 2006
http://www.bakerhughes.com/investor/rig/excel/1987_2006_ANAVBYST.XLS
Baker-Hughes Rig Counts
U.S. Annual Averages by State 1987 - 2006
http://www.bakerhughes.com/investor/rig/excel/1987_2006_ANAVBYST.XLS
Baker-Hughes Rig Counts
U.S. Annual Averages by State 1987 - 2006
http://www.bakerhughes.com/investor/rig/excel/1987_2006_ANAVBYST.XLS
Kansas Oil & Gas news
Nine New Fields Recognized in Kansas
The Kansas Geological Society's Nomenclature Committee, in association with the Kansas Corporation Commission (KCC) and the Kansas Geological Survey, have named 9 new oil and gas fields in Kansas at a meeting recently held in Wichita, Kansas. The new "rank wildcat" discoveries in Kansas is down by 18 percent compared to 11 new fields a year ago. The number of new discoveries of all types in 2007, including infield wildcats, totaled 16, down from 31 a year ago or by nearly 48 percent . In addition to naming new pool openers, the KGS Committee also acknowledged 37 field extensions, 8 new source pays in established fields, and 3 previously abandoned fields were revived.
http://www.theindependentonline.com/pdf/NewDiscMo0207.pdf
ENERGY BACKGROUNDER
1220 L Street, Northwest Washington, D.C. 200054070
http://www.api.org
PETROLEUM FACTS AT A GLANCE –March 2007
1. U.S. petroleum imports (crude & products) in February 2007: 12,521,000 barrels per day
(February 2006: 13,307,000 b/d). [API]
2. Total imports in February 2007 as a percentage of total domestic petroleum deliveries: 59.6
percent (February 2006: 65.5 percent). [API]
3. Persian Gulf petroleum imports in December 2006 as a percentage of total imports: 18.0 percent
(December 2005: 17.5 percent). [DOE]
4. Average price for a barrel of OPEC crude oil on March 2, 2007: $57.98. [DOE]
5. Average U.S. refiner acquisition cost in January 2007 for a barrel of crude oil: $50.69. [DOE]
6. U.S. crude oil production in February 2007: 5,244,000 b/d (of which 749,000 b/d was Alaskan)
(February 2006: 5,142,000 b/d). U.S. natural gas liquids production in February 2007: 1,765,000 b/d
(February 2006: 1,677,000 b/d). [API]
7. U.S. marketed natural gas production in December 2006: 54.3 billion cubic feet per day
(December 2005: 51.5 billion cf/d). [DOE]
8. U.S. deliveries from primary storage of motor gasoline in February 2007: 9,237,000 b/d (February
2006: 8,836,000 b/d). [API]
9. U.S. deliveries from primary storage of distillate fuel oil (home heating and diesel) in January
2007: 4,455,000 b/d (February 2006: 4,318,000 b/d). [API]
10. Total petroleum products delivered to the domestic market in February 2007: 21,020,000 b/d
(February 2006: 20,316,000 b/d). [API]
11. Average active rotary drilling rigs in the U.S. as of March 9, 2007: 1,757 (alltime high of 4,530
announced 12/28/81; record low of 488 announced 4/23/99). (2005 average 1,383) [Baker Hughes
Inc., Houston]
March 14, 2007 (F)