New Spy Technology To Spawn Oil Revolution

Tyler Durden's picture

Submitted by James Burgess of OilPrice.com

New Spy Technology to Spawn Oil Revolution

The future of oil exploration lies in new technology--from massive data-processing supercomputers to 4D seismic to early-phase airborne spy technology that can pinpoint prospective reservoirs.

Oil and gas is getting bigger, deeper, faster and more efficient, with new technology chipping away at “peak oil” concerns.  Hydraulic fracturing has caught mainstream attention, other high-tech developments in exploration and discovery have kept this ball rolling.

Oil majors are second only to the US Defense Department in terms of the use of supercomputing systems, which find sweet spots for drilling based on analog geology. These supercomputing systems analyze vast amounts of seismic imaging data collected by geologists using sound waves.

What’s changed most recently is the dimension: When the oil and gas industry first caught on to seismic data collection for exploration efforts, the capabilities were limited to 2-dimensional imaging. The next step was 3D, which gives a much more accurate picture of what’s down there.

The latest is the 4th dimension: Time, which allows explorers not only to determine the geological characteristics of a potential play, but also tells them how a reservoir is changing in real time.   But all this is very expensive.  And oilmen are zealous cost-cutters.

The next step in technology takes us off the ground and airborne—at a much cheaper cost—according to Jen Alic, a global intelligence and energy expert for OP Tactical.

The newest advancement in oil exploration is an early-phase aerial technology that can see what no other technology—including the latest 3D seismic imagery—can see, allowing explorers to pinpoint untapped reservoirs and unlock new profits, cheaper and faster.

“We’ve watched supercomputing and seismic improve for years.  Our research into new airborne reservoir-pinpointing technology tells us that this is the next step in improving the bottom line in terms of exploration,” Alic said.

“In particular, we see how explorers could reduce expensive 3D seismic spending because they would have a much smaller area pinpointed for potential.  Companies could save tens of millions of dollars.”

The new technology, developed by Calgary’s NXT Energy Solutions, has the ability to pinpoint prospective oil and gas reservoirs and to determine exactly what’s still there from a plane moving at 500 kilometers an hour at an altitude of 3,000 meters.

The Stress Field Detection (SFD) technology uses gravity to gather its oil and gas intelligence—it can tell different frequencies in the gravitational field deep underground.

Just like a stream is deflected by a big rock, SFD detects  gravity disturbances due to subsurface stress and density variations.   Porous rock filled with fluids has a very different density than surrounding solid rocks. Remember, gravity measurement is based on the density of materials. SFD detects subtle changes in earth’s gravitational field.

According to its developers, the SFD could save oil and gas companies up to 90% of their exploration cost by reducing the time spent searching for a reservoir and drilling into to it to determine whether there’s actually any oil and gas still there.

“Because it’s all done from the air, SFD doesn’t need on-the-ground permitting, and it covers vast acreage very quickly. It tells explorers exactly where to do their very expensive 3D seismic, greatly reducing the time and cost of getting accurate drilling information,” NXT Energy Solutions President and CEO George Liszicasz, told Oilprice.com in a recent interview.

Mexico’s state-owned oil company Pemex has already put the new technology to the test  both onshore and offshore in the Gulf of Mexico, and was  a repeat customer in 2012.  They co-authored with NXT a white paper on their initial blind-test used of the survey  technology.

At first, management targeted the technology to frontier areas where little  seismic  or well data existed.  As an example, Pacific Rubiales Energy is using SFD technology in Colombia, where the terrain, and environmental concerns, make it difficult to obtain permits and determine where best to drill.

The technology was recently  contracted in the United States for unconventional plays  as well.

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css1971's picture

Peak oil = 2005-6 We are now sliding down the other side of the peak no matter what they do to get the stuff out.

James_Cole's picture

Actually pretty cool stuff, but does nothing for peak oil. 

And fracking is not a 'new' tech and certainly isn't a sophisticated one lol

semperfidelis's picture

We ares aved I tell you ...
Glory to this new technology. 10 cents a gallon gas in weeks...
All rejoice.

0b1knob's picture

How is any of this "spy" technology?

Normalcy Bias's picture

Rumor has it that they snap pictures of you spanking the monkey through the bathroom window, and then use those pics to 'motivate' you into becoming a lifelong Democrat.

balolalo's picture

This is not an oil revolution.

Fracking is like squeezing the sponge.    A lot comes out but in the end there is less afterward.    

Peak oil is not an abstract theory.   Fracking only bought us, and the bubble economy, some time to keep the charade going.   As if the earth could support 7+ billion wanna-be westerners.  It can't and no economic theory can change that physical reality. 

TPTB know this and are bidding their time, prepping 1% style. Why do you think they are militarizing the police? To keep us in line as more people are shifted into the peasant class.  

Oil is energy, energy is food, food makes people.    

Take away the oil and people will starve.    And on the way down, the cities will burn.   Exhibit a: kiev.  Exhibit b: detroit.  Exhibit c, d, e........

logicalman's picture

The earth will be fine.

It's humans that are fucked

Paraphrase of Mr. Carlin

Yesterday is gone.....

Tomorrow may not happen.

What does that leave?

Just asking.

Radical Marijuana's picture

I agree, balalalo! There are lots of interesting articles which attempt to correlate the basic statistics about fuel and food with political "revolutions." I find the nostalgic nonsense related to the descriptions of those "revolutions" to be quite ridiculous. Typical reactionary revolution, in which the analysis of the basic facts tends to be done well enough, to get the deeper background, but then, still leaps of faith towards miraculous "political" cures for basically physical problems, which were able to get to be so much worse because of the bullshit "politics" that buried those problems so deeply, for so long.

As one example of that kind of article:

http://www.economic-undertow.com/2014/02/26/turning-points-and-peak-cust...

Turning Points and Peak Customer

February 26, 2014

Nassim's picture

The French had these "sniffing" planes 30 years ago. It was all a hoax that made a lot of money for some people

"Great Oil Sniffer Hoax"

http://en.wikipedia.org/wiki/Great_Oil_Sniffer_Hoax

It is funny to see that they are repeating the same hoax a second time to great success. They seem have taken ZH in.

 

In French it was called

"Affaire des avions renifleurs"

http://fr.wikipedia.org/wiki/Affaire_des_avions_renifleurs

New World Chaos's picture

Yup.  I used to work in the industry and I am calling bullshit on this stuff. 

Any geophysics tech loses resolution with depth.  This is because small, unknown variations in the properties of shallow rock will mask the weaker signals from deeper rock.  Deeper than a few tens of meters, anything besides seismics will be only marginally more accurate than witchcraft.  Getting useful seismic data at oil depth, and processing it correctly, is such a such complex job that few companies have the equipment and software to do it and they charge a fortune for the service.  Even then it's a crapshoot with rapidly diminishing returns.  That's the brutal truth.  But high costs, high rewards, and high complexity combine to give a high prevalence of ripoffs.  A lot of these ripoffs aren't even deliberate.  It is common for an inexperienced company to sell inexperienced miners a cheap survey with a nonseismic technique that they push deeper than they should, and they end up over-interpreting data that is inherently crappy.  There are also scammers out there.  They are usually selling a fast scanning, revolutionary new technique based on technobabble that has little or no peer review because the mathematical guts are "proprietary".  That seems to be the case here.

A real gravity survey is notoriously difficult.  It requires moving a highly sensitive, easily damaged instrument on a laser surveyed grid.  The operator must retreat with each measurement or his own gravity will screw things up.  Conditions must be perfect or vibrations will screw it up.  Wind, rain, trucks, sparrow farts and ghosts will screw it up.  Back in the cubicles, the effects of tides, barometric pressure variations, sun and moon, nearby hills, etc.  must all be subtracted out.  Even then the depth of useful data is limited.  So when someone pretends to do a gravity survey from an airplane, with all the vibrations, plus random wind currents giving accelerations which mimic subtle changes in gravity, it must be a scam.

If someone wants to figure out how the reservoir is draining, there are multiple ways of measuring ground sinkage within a centimeter.  It's not perfect but it's relatively easy. 

If they really need to know what's down there, they need to drill a fuckin' hole.

prains's picture

they need to drill a fuckin' hole.

 

and stuff Fonestar in it

circusmaestro's picture

hey ashtag #ImWithYouRex  please ZH, report on this. It's sooooooooo embarrassing..... William Banzai, where art you bro?

juangrande's picture

I recently read that the ROI on fracking in the Bakken shale reserve was negative. For every $1.50 invested, $1.00 of oil was removed. Basically, each well drilled tapped out relatively fast and required another well to be drilled nearby. I don't remember the link but it was from ZH.

New World Chaos's picture

Maybe the system's ROI is positive when fracking fluid in well water gives the little people expensive mystery ailments, and hinders their ability to live off the grid.  Fracking will fuck America for generations.  This is one of the puppetmasters' long term goals.  The puppetmasters themselves won't be affected by poisoned groundwater because they can afford to drink Evian, or even shower with it.

logicalman's picture

You conspiracy theorist!

;-)

Radical Marijuana's picture

The "puppet masters" are criminally insane, not actually exempt from their own actions.

New World Chaos's picture

P.S.  Deep gravity surveys have been done from the windless environment of space, and deep magnetometry is often done from aircraft.  The output is real but the resolution is much too low for targeting wells.

Urban Redneck's picture

Because it's already being used on the American sheeple with a slightly different cover story. But when comes to Loki's methods, some of them really never get old, if you really want to dig through history.

Although there was this time when someone from one of the major intelligence services offered to sell me seismographic data that was in the possession of another department/ministry within the government. Now, whether that dissemination method was a function of official policy, rogue fiefdoms, employee theft- who's to say? It also raises some interesting questions about the data acquisition policies and methods- depending on which intelligence service one assumes I am referring to.

One comes across some very deep and interesting rabbit holes when drilling or digging for energy and minerals.

New World Chaos's picture

From these squiggly lines, I deduce that America needs to manufacture an excuse to "spread democracy" to your country sometime within the next few years.

Urban Redneck's picture

We already have direct democracy here, so the Ministries of Truth must muster a new dialectic before embarking on that adventure, but they're most certainly trying. More likely, IMHO, someone simply tires of my humorous humor and takes a more direct approach. But it is a great game, and while it may be lawless- there are at least customs.

But before one crosses the Bifröst and is deemed worthy to enter the rabbit hole and view the squiggly lines incarnate, they must first successfully pass Heimdall's challenge. As long as Man has been digging for treasure, people have proffered treasure maps to those men... To your original point, it sounds like a disciple of Loki may have entered the Digital Age of treasure cartography.

What was interesting about my little stroll over towards Asgard, was that my companions, who all specialized in the field of treasure hunting, each had more experience than I had years... So five guys with well over combined century of experience sat down one evening and among ourselves discussed Heimdall's challenge. We had a rather lengthy and technical exploration of the merits, costs and benefits. In the end- we were searching for black gold and Heimdall was offering yellow gold, so we parted company pleasantly. However, one wouldn't expect a virgin to extemporaneously produce and analyze a Kinsey scale or Klein grid... So it seems a rational conclusion that this sort of predicament does come up every so often among those who travel in certain circles...

New World Chaos's picture

Can't figure out what you mean by Heimdall's challenge.  Too cryptic.  That's OK.  Getting a mortal into Asgard (the world behind the curtain?) is difficult.  Sometimes it is even harder to come back and broadcast the Gods' secrets to muggles, and not be punished for it.

BTW, I once submitted a paper to an academic conference that never happened.  There were suspicious oddities about the way the whole thing just evaporated.  I told my boss the conference must have been a ruse by Chinese intelligence looking to steal information about the latest mining techniques.  He was inclined to agree.  Good thing he was wise enough to tell me not to reveal too much secret sauce in the paper.  But they still could have reconstructed the technique. 

Guess that made us one of those companies with a proprietary technique that hadn't been peer reviewed.  Ours wasn't a scam.

Urban Redneck's picture

I don't actually need to be cryptic there (as long I'm not providing real names), but there were just way too many obscure, yet related, mythological metaphors to pass up. Mortals are verboten in Asgard... TPTB who knows- according to some- they're reptiles. If they are, I'm not privy to it. However an entire mythology has been constructed around them, and then establishment disavowed eccentrics like Schliemann go and kick off the "turning conspiracy theory into conspiracy fact" business.

The insinuation with Heimdall's challenge was that Loki could be disguised as Heimdall, hence the whole thing would have been a financial con by an intelligence service (as opposed to their more well known financial con of taxpayers), and certainly not cooperation between big business and big government.

That wasn't the consensus of the wise men/old farts. The crux was that the seismic was supposedly shot in year X, so what what the would be the best we could expect of the raw data, and then questions about the analysis methods used to prepare the charts... the data certainly could have been useful and very valuable to miner for prioritizing upcoming blocks to bid on. However, we would have had to turn around and find an interested miner to sell to, and it was deemed not worth the cost to guys who didn't need the potential money and a distraction from our primary objective. But it was interesting what passes for unremarkable in the Wild Wild West of exploration. However, the flip side is that when a bunch of guys who look out of place suddenly drop into someone's little fiefdom and start meeting with officials, the local troll master also has an understandable inclination to determine just WTF you're trying to do in his backyard.

As for the Chinese, I sort of avoid them like the plague- professionally, except as buyers where they are providing vendor financing and the payments don't commence until after delivery has been made and the quality has been assured.

I won't sell anything to them that is a produced using protected intellectual property, since I ran into one instance where a lead contractor for a government ministry apparently tried to reverse engineer a complex chemical product and dilute it to further cut costs before mysteriously cancelling a contract at key renewal point, even though the product (even the likely Made-in-China fake) was demonstrated better than any other similar product. I am just not interested in playing both buyer-beware and seller-beware, if there other options.

But news of "disappearing" trade conferences certainly reinforces my bias, thanks for the confirmation.

logicalman's picture

This is all very interesting, if somewhat taxing, to read.

The thing that always bothers me is that humans have to one up each other and take advantage. To the point of war.

If we all cooperate, we all win.

If we fight there are losers.

Those that use divide and conquer  so that they are the (few) winners, know this and use it against those that don't.

If you get to do something you love to make a reasonable living, you're golden.

Fair exchange and REAL money would, IMHO, fix most of the world's ills

Unfortunately, I'm not an optimist.

By the way, countries are a good example of divide and conquer - maybe one of the best.

Urban Redneck's picture

I packed up and moved 6000 miles to the only place I could find that at least had a cooperative framework (instead of collectivist or authoritarian), and I've still found a substantial number of vultures, so that doesn't appear to be an actual solution.

But if I pack up my marbles and sulk in the corner, it does nothing to improve the broader situation.

Politicians and leaders love to discuss and focus on process, particularly when they can't brag about outcomes, but they don't generally understand the serious consequences and probable outcomes of the very processes they engineer, particularly over the longer term.

Unfortunately, I don't see any solutions absent actual education and people choosing to adopt better values, which if I lived 50 more years might not be a long enough timeline...

In the meantime, I have a family I love and passion for my job, and the real luxury (for now) of saying "no" and if that luxury is taken away I would go back to my farm with no marbles and be content just growing food, but that behavior is the result of my formative years, and the examples of large scale "re-forming" and coercive imposition of values seem to have rather horrific outcomes.

So I wind up back at education and choices, seeking more and better.

New World Chaos's picture

Thanks for clearing that up. 

As for mythology (which is an obsession of the puppetmasters), I do think most of it is based on historical events but these events were filtered through a 100+ person game of telephone before someone wrote it all down.  It can work surprisingly well.  Indians of the Pacific NW have multiple accurate stories going back to the end of the last ice age.  Australian Aboriginies have songs which have been used to trace their migration routes back to New Guinea, which they left 40,000 years ago when the sea was low enough.  You can also reconstruct deep history from myth in the same way that scientists can partially reconstruct the genomes of ancient lifeforms that spawned many lineages.  You trace back the tree, figuring out which "mutations" are likely to have emerged in which branch.  Do this long enough and you start to realize that all myths follow the same pattern.  Maybe that's the pattern that resonates with our brains and myths that fit the pattern have a competitive advantage.  Or maybe these myths go all the way back to the mother culture from 80,000 years ago, when humans went though a tight genetic bottleneck.  Maybe that's why so many creation myths talk about a time when all people spoke the same language and lived in harmony with each other and with nature. 

The gods seem to be the same too.  Even widely separated ones like Norse and Sumerian gods.  So, are they based on real history?  David Icke certainly thinks so based on comparative mythology.

Pumapunku might be the remains of an alien base camp.  The Mahabarata reads like Buck Rogers scifi, complete with spaceships, rayguns, nukes, missiles, and evil alien overlords. Where did that come from?  Does it have anything to do with the plutonium-infused skeletons in the melted city of Mohenjo Daro?  These are like Building 7 and the Pentagon.  Good entrances to the ancient alien rabbit hole.  Turn off the fuckin' history channel.

I don't think the elites are actual Lizard People.  I do think some of them are mind controlled, often by each other, sometimes by... something else.  I'm not sure what.  Demons?  Aliens?  Is there a difference?  Seems like every year I struggle to integrate a deeper, nastier layer of conspiratorial weirdness into the worldview.  Are the puppetmasters cutouts for an alien power?  Heirs to alien knowledge, passed down through mythology, which they use to enslave us?  Is the universe like Stargate SG-1 plus a bit of H.P. Lovecraft?  So many questions.  Maybe this will be the year it comes together.

Urban Redneck's picture

As far back as middle school, I can remember a history teacher specifically saying that scholars had spent careers looking at this or that point and disagreed as to the causes and consequences of particular events, and the class was regularly made to debate those events mano-a-mano (and there were occasional fist fights that broke over out over such debates).

In high school, I was introduced to Newton, and the teacher said something to the effect of "Here are the scientific Laws of motion and gravitation, they represent the best thinking of the time and are held inviolate by consensus of professionals, until they are disproved or qualified. If you don't understand this go ask [next semester's professor] to explain Einstein, and then ask him when his today's physicists are going to to even reach consensus about quantum physics, and more importantly why."

My first semester of University, a US Foreign Policy Lecturer introduced himself this way-
This is not grade 13, if you perform at the same level you did last year, you will FAIL
The answers to the exams will not be found in your dogmatic textbooks, even if memorize them verbatim,
you will not pass a single examination, and you will FAIL
The actual words you will need to pass will not be found if you read every book in the library,
If you attempt to plagiarize someone else work, you will FAIL
If you do not read the assigned materials before attending my lectures,
you will not be able to my words in proper context, and you will FAIL
If by the final exam, you have not mastered the use of the microfilm machines, you will FAIL
If you do not clearly demonstrate to me that you can think and reason, you will FAIL
If you intend to fail, or are unwilling to commit the time and effort required to pass my course,
Do yourself and me a favor and DROP OUT by the end of the week.
(That professor preferred classrooms to lecture halls, as he had a fondness for throwing books, balls, and other objects at students who didn't appear to be paying attention)

So where have things devolved to today? (not that I have spent any real time in academic institutions the last couple decades)-
It seems orthodoxy, conformity, and subservience to the Church of the Holy Diploma is again paramount
Confrontation, whether intellectual or physical, with dogma or even consensus, is apostasy. It's the Dark Ages redux.

As more people are further dumbed down (or never taught to think in the first place) Hegel, Bernays, et a. become less critical, as out of ignorance, those who truly understand how to manipulate the engines of society are given greater latitude to do so in pursuit of their own ends, while the idiocrasy machine continues to build itself. If we get any good answers in the near future- I think it will be due to either dumb luck, or the walls tumbling down, and the contents of archives seeing the light of day (as happened after the fall of the USSR and numerous other States).

In terms of the intersection of mythology/religion, science, and history/business/foreign policy - I think the proximal relationship of anticlines to meteorite impacts, from the destruction of the Garden of Eden or the various Great Flood tales to the rise of American military industrial complex is rather interesting.

James_Cole's picture

has the ability to pinpoint prospective oil and gas reservoirs and to determine exactly what’s still there from a plane moving at 500 kilometers an hour at an altitude of 3,000 meters.

Eeyores Enigma's picture

"...new technology chipping away at “peak oil” concerns..."

he means "with new financial hijinks and debt chipping away at peak oil concerns..."

Cacete de Ouro's picture

I find it interesting that this article talks about the availability of new technologies for finding oil and associated investment in these technologies, whereas very recently Pierre Lassonde of Franco Nevada said to Kitco News that the gold mining industry is suffering because of a lack of new technological discoveries (and no investment in new technology) in finding gold.

OK, different industries, but surely there is a contradiction somewhere here?

A Nanny Moose's picture

Peak facing oil is just another faddish fucking government fucking program.

I'm 

waterwitch's picture

Agreed. Not mentioned but probably as important as any of the efficiencies associated with successful oil/gas production is Monitoring While Drilling (MWD) technology which allows for accurate knowledge of drillbit position so it can be steered to the target in real time.  Another major advance is the ability of drill rigs to literally 'walk'  several feet on a drill pad, allowing for multiple directionally drilled holes without constructiing multiple drill pads or having to tear down and set up the drill rig. This has been huge.

The probability of finding a super giant oil field is minimally better today than it was 15 years ago.  Get ready for the big slide down the backside of the Peak Oil production curve.  Yee-haa!

 

 

Serfs Up's picture

Wow....all that pinpointing...and all that super computing power and yet...and yet...I cannot shake this feeling that the oil majors are now spending 2x and producing 0.9x compared to 5 years ago.

I thought this computy stuff was supposed to work the opposite way?

TuPhat's picture

If it's used to 'pinpoint oil resevoirs' then that says to me that those resevoirs must be quite small.  That means they won't be finding that much oil.

TheFourthStooge-ing's picture

.

If it's used to 'pinpoint oil resevoirs' then that says to me that those resevoirs must be quite small.  That means they won't be finding that much oil.

True, but it will be a good pump and dump scam up to the point where people figure out that it's just a high-tech way of proving that all the big oil fields have already been discovered.

Kirk2NCC1701's picture

GPUs on a Video-card lend themselves to Image-processing.

Thus, all the eager Bitcoin/Crypto-Currency (CC) miners have been nice enough to fund the development and spread of cutting edge Video cards and global GPU capacity, will be able to pitch in...

/ If or when CCs crash (due to losing the fight with the Fed), they can always lease their spare GPUs to the Big Oil cartels:  Join the "Cash for GPUs" program.  You too could earn $5/day in your spare time.  /sarc

logicalman's picture

On the other hand, you could give the spare capacity to something useful, like planet hunting, protein folding or SETI.

 

Kirk2NCC1701's picture

But if course / Mais oui, my friend from the "True North, strong and free".

You should not be too shocked that 'Kirk' has thus been helping SETI since 2000. Eh.

doggis's picture

DUDE -- THE LOW HANGING FRUIT ON THE OIL TREE HAS BEEN PICKED.

 

FINDING NEW OIL SOURCES IS THE LEAST OF THE PROBLEM. THE PROBLEM IS NET/NET.......WHEN YOU EXPEND 2 BARRELS OF OIL [ENERGY EQUIVALENT] TO EXTRACT 1 BARREL OF OIL - WHICH IS WHAT WE ARE DOING - THEREIN LIES YOUR PEAK OIL!

Schaublin's picture

Actually, it is worse than that.  To sustain the current level of consumption and lifestyle, you are looking at 1 barrel in to 12 barrels out. 

mumbo_jumbo's picture

i watched a really good documentary regarding the history of petroleum and the first peak oil scare (at least in the USA) was that by 1925 the USA will have used up all it's oil.......so...

TheFourthStooge-ing's picture

...so we're all saved because of a television program you watched?

Flakmeister's picture

Better yet, it assumed we hadn't learned anything since 1925...

Cloud9.5's picture

Artists are sensitive types and tend to be out in front of things.  Being early in a prediction and being wrong is not quite the same thing. Recognizing a trend is open to the observant.  Picking a date for most of us is a fool’s errand.  Hubbard however tended to be on the mark.  I suggest you look at the production trends and not at the estimated reserves.  It is pretty clear that oil as it was once defined peaked in the United States in 1970.   It is becoming clear that world production of that same substance peaked around 2005.  We have seen a considerable uptick in U.S. production now that we have extended the definition of oil to include all liquids.  It is also fairly clear that shale rigs have a rather short half-life.  We may be able to extend the American experience to other formations around the world and then again we may not.  As more and more of the cheap oil is replaced by the more expensive all liquids oil it becomes apparent that net energy is bleeding out of the system.  The level of economic activity sustained by cheap oil is not being maintained by the more expensive substitutes.  The corresponding economic contraction is all around us.  I don’t deny that within the political district and the oil producing states economies are booming elsewhere especially in the periphery not so much.

Flakmeister's picture

Currently the world is at a point where it can economically support the price of the marginal barrel required to offset the decline of existing fields. The world economy has demonstrated that it currently cannot deal with Brent in the range $115-118 for sustained periods. Fortunately the cost of a new barrel is below that, at least for now...

The shit really hits the fan when the cost of a marginal new barrel becomes more expensive than what the economy can support. Then decline set in and Four Horsemen saddle up... 

It would appear that the Oil majors are very close to that edge given the declines in CAPEX....

However, what can first happen is that geologically we cannot replace that marginal barrel fast enough though the economy can support the price of extraction. Same outcome but a different path...

Given the data and using history as a tempered guide, one can not say with certainty which scenario plays out. To now, that marginal barrel is still at price at which the economy can sustain activity...

Finally, in both of the above scenarios, the EROEI event horizon is looming but is still some ways off..

The issue is whether we can develop a new infrastructure with at least an EROEI of 7-8 before the decline significantly affects global food production and distribution...

disabledvet's picture

Besides...Wall Street has collapsed, the dollar is worthless, the world is shunning our debt and there are not "story stocks" in the equity space.

I agree...it's like they're gonna pull a million barrels of oil a day out of North Dakota or something.
Ridiculous.

Ignatius's picture

Dowvote for ALL caps.

buzzsaw99's picture

vee hav gazolene all over zee place!

kurt's picture

Dowsing with a better story. Pay the man.

 

 

An Army of Drunks with Two by Fours March on Washington

agent default's picture

The bottom line is that you have to get more and more sophisticated in order to get to the oil.  This is the definition of a losing battle.  Sure there is plenty of oil at $150 and even more at $1500 a barrel, but in the end it is no longer the cheap energy source we have built our civilization on.