Chart of the Day - Alaska Oil Production

Perception versus the reality of peak oil.

I asked 10 Americans the question, "How is oil production going up in Alaska?" Nine said they do not know, and one said great. Here is the truth in my personal Chart of the Day.

Alaska produces about 10% of the oil in the US.

It once was producing over 60,000,000 barrels per day month (now can you all get over the typo and look at the chart?), but Alaska now produces less than 18,000,000 barrels, or not even one third of what it once did.

Change is indeed coming to America.  It just is not the type of change that sells Chevy Suburbans, McMansions, Disney cruises, or airfairs, so do not expect to hear or read about it in the mainstream media.

Comments

[Mad Max]

Because most profit-seeking businesses reduce sales when their product is selling at record high prices.

What a bunch of fucking idiots we now have on ZH.

[johnQpublic]

i actually think he is on to something

at, say, 1500 dollars a gallon, you wouldnt need to pump much oil at all to satisfy demand

[FeralSerf]

No he's really not on to something.  Those are record nominal prices, not record real prices.

If the minimum wage is $3,000 per hour, $1,500/gal should be no problemo.

[Mad Max]

So in the stock market you buy high and sell low, eh?

Please do tell me all about these profit-seeking publicly traded companies that voluntarily curtail their production and sales when their product is selling at 2x-3x typical prices for the prior 10-20 years.

[forexskin]

gold mining companies do it all the time.

when the price goes up, its economical to pull the low grade crap out, and save the richer deposits for lean times. as long as fixed costs are not rising, they can keep their margins and improve the grade of proven resources.

not saying that's what they do in alaska with oil, but its called resource management.

learn something before you swing that big dick around here.

[aerojet]

Might be better if you learned to spell 'airfare' before trying to grace us with your broad knowledge of peak oil!  Aren't they just pumping less since demand is back to 2001 levels?

Or is an 'air fair' something like Oshkosh?

[Totentänzerlied]

I don't know what kind of ridiculous trade agreements they operate under, but one would think they would sell to someone else (no shortage of major buyers) whatever America doesn't buy.

PS: I didn't junk you, but attacking someone over a typo is never necessary or in good taste.

[akak]

No, Aerojet, we are NOT just "pumping less since demand is back to 2001 levels".  Less is being pumped because there is simply less oil TO pump.  At this rate, in less than ten years the Alaska pipeline will have to be shut down altogether, as a certain minimum amount of oil (perhaps half of current flows) MUST be maintained at ALL times in order to keep that flow from cooling to the point of congealing, and in order to keep undesirable components of the petroleum such as waxes from excessively building up on the walls of the pipeline due to lack of sufficient heat within the flowing oil itself.

[Joe Davola]

NO!!!

That means no more Ice Road Truckers and the fair Lisa with all the upshifts and downshifts and upshifts and...

Where was I?

Oh yeah, time to stock up on IRT memorabilia so I can make a killing on ebay.

[cbxer55]

Air Fair just means that no one in the immediate vicinity has broken wind.  ;-)

[JeffC]

peak oil ???  really ?

try government strangled oil ...

[snblitz]

If you are old enough you remember the peak-oil of the 70's.  Lines at gas stations.

It was then, as now, all lies.   If you do not remember it, go ahead and read the books and newspapers of the time.

There is another secret, you could read about peak-oil in the 30's and the 50's too.  It is there, you just have to look.

But I understand, this time its different.

[johnQpublic]

and it must be government strangled, because surely infinite oil may be pumped from a finite planet?

government strangles for oil would be more believeable

[hedgeless_horseman]

What legislation in the 1980's (I guess under President Ronald Reagan) are you specifically referring to that 'strangled' production in Alaska?

[AnAnonymous]

Hopefully, it was edited because hey, the two words were in the first line.

[palmereldritch]

OooOoo00ooOOo0o0oO0ooo0oo

[akak]

No, it was all a plot by US citizenism citizens to confuse you.

[palmereldritch]

Blobbing and such

[zapdude]

Akak, I have been following your rants and taunts and jokes at this idiot across several articles now. 

I've almost stopped reading the articles just to read your replies to his/her/its retarded comments.

It's hilarious!!!  'Blobbing up'!!!  I practically peed myself from laughing, and have had several people in the office swivel around to look at me.

Now I'm afraid I can't get that stupid phrase out of my head.  Keep the laughs coming, buddy.  :-)

[Totentänzerlied]

ditto.

[akak]

Just more arrogant disregard for real world problems by US citizens.

Casual humor in the face of their power spreading and greedy blobbing up is the mark of US citizenism.

Laugh, mock, make fun of, blob up --- such is the eternal US citizen nature.

;-)

[falak pema]

you talkie out of turn, you takie mikkie out of great chinese citizenry, me no likee; me go tell big party great man of age, higher power, who know all about american citizenry false moustache and left hand gun slinging. 

Me find reply about great shillery of american skullduggery of Alaskan oil hill flash in the mirror, you even desecrate great Apache tradition of smoke plume true signal hokum pokum. You make original american into holographic, pornographic flying knife scape goat. You underestimate great master plan of free people not carbon copy of US citizenry. Believe me. 

I hope you will see all one day through my true mirror not your false mirror.

[nmewn]

I don't know which take down of the Chinese dishwasher is better, yours or akak's...lol.

[JW n FL]

Eat the Rich!

The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

http://www.federalreserve.gov/faqs/about_14986.htm

They have been eating You! and Yours!! for GENERATIONS!!!

Article I, Section 8, Clause 5, of the United States Constitution says

"Congress shall have the power to coin money and regulate the value thereof and of any foreign coins".

But that is not the case.

The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank.

http://www.youtube.com/watch?v=V74DERg_aCI

Keiser Report: It's All Legal, Folks! (E246)

Uploaded by RussiaToday on Feb 7, 2012

In this episode, Max Keiser and co-host, Stacy Herbert, discuss the supercommittee that runs America, the perils of Draghi's "blitz" and the IMF turnaround on austerity for Greece. In the second half of the show, Max talks to Gonzalo Lira about austerity, printing and running.

KR on FB: http://www.facebook.com/KeiserReport

Signed, Christian Constitutionalist

P.S. Don't forget!! “See Something? Say Something!” and here is the link for you ---- > http://www.dhs.gov/files/reportincidents/see-something-say-something.shtm

DHS Home Grown Christians Trying to Protect the Constitution are now Terrorists Propaganda

http://www.fas.org/irp/eprint/rightwing.pdf

[CrazyCooter]

How many of you all knew there was recently a property tax dispute regarding TAPS in AK? Did you know the opinion of said protest is available online?

http://aws.state.ak.us/officeofadminhearings/Documents/TAX/TAX06SARB%20Amended%20Sup%20Ct%20decision.pdf

Here are some quick facts (from the opinion of the judge)...

• 94. For the evidence persuasively demonstrates that the affiliated producers would rebuild TAPS at a cost of billions of dollars (~19 billion to be precise) to transport ANS petroleum products to market if TAPS was not in existence as of the lien date.
• 100. The first tanker of crude oil left the VMT on August 1, 1977. At that time, ANS proven reserves were approximately 9.6 billion barrels. As of January 1, 2006, over 15 billion barrels had been transported through TAPS. As of January 1, 2006, there were more than 7 billion barrels of proven reserves on the North Slope to be transported to market through TAPS.
• 393. ... Dr. David Hite, in his expert report, cites to a number of sources that
  estimate large quantities of technically and economically recoverable oil on the North Slope, including a federal evaluation and assessment of oil resources in Arctic Alaska that estimates there are 29.85 billion barrels of economically recoverable oil available for shipment down TAPS.
• 394 through 397 <<read it it pertains to the previous stunner number>>
• 407. ... The Royalty Trust stated in its 2006 SEC  10-K filing that “BP Alaska  projects continued economic production [from Prudhoe Bay] at a declining rate until the year 2065 ….
• 509. Replacement cost and assessed value for taxes (see PDF)

More in the PDF if you care to read!

Regards,

Cooter