The nature of tight rock oil wells means that each well is limited in how much oil it can produce over its lifetime, but the number of wells that can be drilled and fracked is immense.The implication is that the only hope for Peak Oil is an alliance of environmentalists, government, and Big Oil to squash the small oil companies driving the petroleum revolution.
The US shale plays have been a bonanza for smaller oil companies. The huge multi-nationals have been late to the game.
Smaller, independent North American oil producers own five times more land in the major U.S. shale plays than Big Oil companies like BP, Royal Dutch Shell and Exxon Mobil. Shale reservoirs from South Texas to North Dakota are dominated by names like EOG Resources, Continental Resources and Pioneer Natural Resources. The diverse array of competitors from private equity firms to independent producers has made it tougher for Big Oil to compete. __ http://fuelfix.com/blog/2014/05/07/bp-exec-us-shale-could-be-laboratory-for-bounties-abroad/Smaller companies are more nimble, and often have the advantage in developing new industries — as long as government interference is kept to a minimum.
Wednesday, May 14, 2014
The end of "Peak Oil"?
A picture is worth a thousand words: