Skip to main content

Posts

Showing posts from April, 2012

The Discrete Charm of Living at the Peak

In the summer of 1858, Edwin Drake punched 33 ft of cast iron pipe into the earth to prevent near surface water from collapsing the hole. He then lowered drilling equipment into the cased hole and used a steam engine to drill a successful, 69 ft deep well. On August 27th, shallow oil flowed almost to the surface and was recovered with a sump pump. Within 10 years more than 5,500 wells had been drilled, and 1,200 were producing oil. Edwin Drake made absolutely no money on developing modern drilling technology and died a poor man. The North American oil industry four years after Drake's well. The Phillips well is on the right, and the Woodford well on the left. Located in the middle of Oil Creek Valley (note the river at the right of the photograph), these two wells showed the early promise of the Oil Regions. The Phillips well was the most productive ever drilled to date, flowing initially at 4,000 barrels per day in October 1861. The

The World is Finite, Isn't It?

Yesterday I gave a presentation to a group of distinguished business leaders.  In my presentation, I tried to show that the global rate of production of petroleum and the associated lease condensate is at an all-time high or a "peak" that at a greatly expanded scale looks like a "plateau."  I used my published, peer-reviewed extensions of King Hubbert's approach to support my arguments. Figure 22 in King Hubbert's report "Nuclear Energy and Fossil Fuels," Publication No. 95, Shell Development Company, Exploration and Production Research, Houston, TX, June 1956. I received a significant push back from several members of the audience.  Their arguments were as follows: King Hubbert tried to address the question of finite resources and today we know he was wrong. Even though Hubbert cycles emerge for individual oil provinces, they cannot emerge for the world.  We have been predicting the peak of global oil production for a long time and it ne