The Rising Influence of Rising Affluence

[OakesCS]

But there is nothing unique about US oil deposits, right?

shades of grey. one could argue that each reservoir is unique in some way (particularly wrt to the oil in the reservoir). However, my point about SAGD (steam assisted gravity drainage) was that the specifics of apparently similar deposits can be sufficiently different so that use of the same techniques will not necessarily enable the same success. Conversely, some techniques are sufficiently adaptable that they can be applied in reservoirs with greatly different geological characteristics (e.g. horizontal well hydrofracturing).

However, that's where the political and legal problems raise their ugly heads. The technology is already exportable. The major oil production and service companies operate all over the world, and to a gross approximation, have similar capabilites and technologies. Technology does no good if the access to the resource is effectively blocked by mineral rights laws that are quite distinct from those in the US or if the service and production company employees are getting kidnapped and shot or if there is no transportation and support infrastructure.

Usually the biggest problems in oil supply and demand are political not technological. The relatively extreme number of rigs poking the US is not just a matter of trying to extract from smaller, declining targets but also a function of the fact that there is a functioning infrastructure and legal system and conducive property rights (for the resource owner and producer).