Oil

Tight oil could not render OPEC irrelevant

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Steve Levine has a blog post discussing the idea that the “unfolding new age of fossil fuel abundance” will have profound effects on various things, including OPEC…The key factor behind this kind of thinking is the rapid rise of production of oil from tight rocks like the Bakken in North Dakota and the Eagle Ford in Texas. I haven’t taken a strong position on what the limits of production are from these sources – it just isn’t clear to me yet from the data that I have available. But we could certainly place some limits on how much geopolitical impact this could have on OPEC.

World Energy Consumption Facts, Figures, and Shockers

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In the first installment of this series, I reviewed U.S. and global oil reserves according to the 2012 BP Statistical Review of World Energy. The second installment covered oil production. Today, I want to examine the changes in consumption of coal, oil, and natural gas since 1965 in the three major consuming regions of the world: Asia Pacific, the United States, and European Union countries.

Shale oil and tight oil

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Since 2005, the "total oil supply" for the United States as reported by the Energy Information Administration increased by 2.2 million barrels per day. Of this, 1.3 mb/d, or 60%, has come from natural gas liquids and biofuels, which really shouldn’t be added to conventional crude production for purposes of calculating the available supply. Of the 800,000 b/d increase in actual field production of crude oil, almost all of the gain has come from shale and other tight formations that horizontal fracturing methods have only recently opened up. Here I offer some thoughts on how these new production methods change the overall outlook for U.S. oil production.