Hooray, oil is suddenly much cheaper than it used to be. That's great news, right? Not so fast.
Articles: EIA projections (5)
Drilling Deeper: A Reality Check On U.S. Government Forecasts For a Lasting Tight Oil & Shale Gas Boom
Drilling Deeper reviews the twelve shale plays that account for 82% of the tight oil production and 88% of the shale gas production in the U.S.
On May 21 the Los Angeles Times reported that “Federal energy authorities have slashed by 96% the estimated amount of recoverable oil buried in California’s vast Monterey Shale deposits...”
The EIA is the elephant in the room when it comes to energy statistics. Its data and forecasts are widely used by analysts and the media and influence energy policy. There is no room for the significant scale of errors and distortions reported herein.
Before I discuss the logic behind negating a peak of production of anything, let me sum up where we are in the U.S. in terms of crude oil production.