Zippyjuan
Banned
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- Feb 5, 2008
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Gull Island is less than ten miles (12km) from Prudhoe Bay. No way is it larger than Saudi Arabia or contain more oil. The main Saudi field covers hundreds of miles.
Would you like to see a photo if the island? Here it is with the hills surrounding Prudhoe Bay in the background. http://photography.nationalgeographic.com/photography/photo-of-the-day/gull-island-alaska.html
The status of Saudi Oil:
http://www.iags.org/n0331043.htm
Even if you beleive that oil is produced biologically even today, it is being used up at a much faster rate than it can be reproduced.
New technology takes lots of time and money to develop and distribution systems put into place. If there was a sharp decline in oil available, we are not able to quickly transition to something else.
Biofuels have a limited ability to be used. Their yields are not that great and growing plants for energy for fuel comes at the expense of growing plants for food- we are already seeing the impact of that with respect to corn based ethanol. It also requires lots of water which is another recource becoming more scarce.
I am not agianst drilling in Alaska or off the coasts. We will have to eventually. But there is not enough oil in those places to even replace our imports which are over 10 million barrels a day.
Would you like to see a photo if the island? Here it is with the hills surrounding Prudhoe Bay in the background. http://photography.nationalgeographic.com/photography/photo-of-the-day/gull-island-alaska.html
The status of Saudi Oil:
http://www.iags.org/n0331043.htm
New study raises doubts about Saudi oil reserves
With over 260 billion barrels of proven oil reserves, a quarter of the world's total, Saudi Arabia is not only the top foreign supplier to the United States - the world's largest energy consumer - but also essentially the sole source of liquidity in the oil market. According to the Department of Energy's Energy Information Administration (EIA), the world will become more dependent on Arabian oil in the next two decades. To meet global demand for oil, Saudi Arabia will need to produce 13.6 million barrels a day (mbd) by 2010 and 19.5 mbd by 2020. Both the International Energy Agency and EIA assume Saudi oil output will double over the next 15 to 20 years. In a new study soon to be released, Matthew R. Simmons, president of Simmons and Company International, a specialized energy investment banking firm, contends that this is not likely to happen. He argues that Saudi Arabia's oil fields now are in decline, that the country will not be able to satisfy the world's thirst for oil in coming years and that its capacity will not climb much higher than its current capacity of 10mbd. Considering the growth in demand, this could easily spark a global energy crisis.
Simmons analyzed 200 technical papers on Saudi reserves by the Society of Petroleum Engineers and his work was peer reviewed by a dozen senior technical experts. What he discovered tells a different story than the conventional wisdom.
Saudi Arabia has over 300 recognized reservoirs but 90% of its oil comes from the five super giant fields discovered between 1940 and 1965. Since the 1970s there haven't been new discoveries of giant fields. The most significant of the oil fields is Ghawar. Found in 1948, the 300-mile-long sliver near the Persian Gulf is the world's largest oil field and accounts for 55%-60% of all Saudi oil produced. Ghawar's current proven reserves are 12% of the world's total. The field produces 5 mbd, which is 6.25% of the world's oil production. According to Simmons, Ghawar's northern regions are almost depleted. Two other giant fields, Abqaiq and Berri, also seem to have peaked in the 1970s.
Simmons analyzed 200 technical papers on Saudi reserves by the Society of Petroleum Engineers and his work was peer reviewed by a dozen senior technical experts. What he discovered tells a different story than the conventional wisdom.
Saudi Arabia has over 300 recognized reservoirs but 90% of its oil comes from the five super giant fields discovered between 1940 and 1965. Since the 1970s there haven't been new discoveries of giant fields. The most significant of the oil fields is Ghawar. Found in 1948, the 300-mile-long sliver near the Persian Gulf is the world's largest oil field and accounts for 55%-60% of all Saudi oil produced. Ghawar's current proven reserves are 12% of the world's total. The field produces 5 mbd, which is 6.25% of the world's oil production. According to Simmons, Ghawar's northern regions are almost depleted. Two other giant fields, Abqaiq and Berri, also seem to have peaked in the 1970s.
Saudi Aramco officials flew especially to Washington to refute Simmons' analysis. In a speech before the Center for Strategic and International Studies in Washington DC, Nansen G. Saleri, a manager of reservoir management for Saudi Aramco said Saudi Arabia can maintain production capacity at the current rate of 10 mbd for the rest of this decade and if needed they could increase maximum output by 20-50% within a decade. His colleague Mahmoud Abdul-Baqi, Saudi Aramco's vice president for exploration also expressed optimism about the future of their industry. "We have a lot of area to explore and find a lot of oil and gas. Our track record shows we delivered for the past 70 years and we will continue to deliver in the next 70 years and beyond." Saudi Aramco says that with more investments it can expand its capacity to 12 mbd or more. But according to the New York Times, privately, Saudi oil officials are less self-assured, cautioning that production beyond 12 mbd would damage the oil fields. Even if their prediction is wrong, the road to the 19.5 million barrels a day by 2020 projected by the EIA is very far.
Some economists who reviewed Simmons' work rejected it on the basis that if oil prices rise high enough, advanced recovery techniques will be applied, averting supply problems. But Simmons disputes this wisdom. For a decade the technological revolution which includes horizontal drilling accelerated the extraction and created "monstrous decline rate." He is adamant that the Saudi oil miracle is fading. "The next generation of Saudi oil will also be harder to extract and therefore more expensive. In 2-3 years we will have conclusive evidence that Saudi oil is peaking," he told Energy Security. Furthermore, he explained that in Saudi Arabia, seawater is injected into the giant fields to pressure the oil toward the top of the reservoir. The problem is that over time, the volume of water that is pumped along with the oil increases, and the volume of oil declines proportionally until it becomes uneconomical to lift the oil.
Analyzing Saudi Arabia's capacity is not an easy task. Saudi Aramco, the state-owned oil company, has not provided production data for more than two decades. OPEC, the IEA and EIA data systems shed little light on what underlies Saudi sand. "Their predictive track record has been awful. In the land of the blind, reliable OPEC data is either untrusted or non-existent " Simmons said. Simmons calls for a new era of true energy transparency. "The IEA should roll up their sleeves and work to obtain far better demand and cost data and far better decline data for non-OPEC oil. OPEC should provide field by field production and well-by-well data, budget details and third party engineering reports."
"The entire world assumes Saudi Arabia can carry everyone's energy needs on its back cheaply. If this turns out not to work there is no 'plan B.' Global spare capacity is now 'all Saudi Arabia.' This is the world's insurance policy and no third party inspector has examined it for years. Conventional wisdom says 'don't worry. trust today,' but if conventional wisdom is wrong, the world faces a giant energy crisis." Calling for large-scale research into new energy sources, he said: "If all these worries are wrong, it is like our preoccupation with nuclear war or future global warming. But even if part of it becomes true and not expected, the results are awful." Coming from someone who has advised the secretary of energy and the 2000 Bush campaign, this is a warning worth heeding.
Even if you beleive that oil is produced biologically even today, it is being used up at a much faster rate than it can be reproduced.
New technology takes lots of time and money to develop and distribution systems put into place. If there was a sharp decline in oil available, we are not able to quickly transition to something else.
Biofuels have a limited ability to be used. Their yields are not that great and growing plants for energy for fuel comes at the expense of growing plants for food- we are already seeing the impact of that with respect to corn based ethanol. It also requires lots of water which is another recource becoming more scarce.
I am not agianst drilling in Alaska or off the coasts. We will have to eventually. But there is not enough oil in those places to even replace our imports which are over 10 million barrels a day.