peak oil? think again..., page-11

Hi Rick

No I'm with you on oil going higher over time but because of a shortage of crude not because companies or countries are holding back production, most exporters of oil need every dollar they can get to maintain there lifestyle as they are largely dependant on it.

In regards to getting crude out of the ground as quick as we use it is simple, its a finite resource. with a finite resource there is always a point where the decline rates in existing wells and oilfields outstrips the production of new wells coming on line.

There is a good reason why companies are drilling in 10,000Ft of water and spending up to $300 million a wildcat well and its not because they want to, they would rather be on land or shallow water.

Another problem we have with crude is that the biggest exporters are producing just fine but are exporting less because of there own consumption.I have graph below on Saudi which with Russia are the worlds largest producers and exporters.

They have produced more since this graph but export less.

We will only know in hindsight when we have peaked in oil but the fact we only produce muck the same amount we produced six years ago despite a treebling in price does not look encouraging.

Cheers Whisky