World has 10 years of shale oil, reports US (Financial Times article)

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Cherihuka's picture
Cherihuka
Status: Bronze Member (Offline)
Joined: Jun 18 2012
Posts: 41
World has 10 years of shale oil, reports US (Financial Times article)

This seems like really important news! Unfortunately I don't pay for online articles and can't read it on FT... but am looking for other news of this report...and thought maybe someone might want to update Chris with the info- since there is no way to 'contact' staff here.

 

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 2934
Article

A link to a CNBC article on the same topic can be read here. Rest assured, Chris is aware of this news as well as the steady drumbeat of claims emerging from the ongoing story of the shale revolution.

I'll leave it to Chris to clarify his thinking, but I will highlight part of the article that I think is very important to keep in mind:

Production from shale has helped keep a lid on crude oil prices at about $120 a barrel, giving western countries leverage to impose sanctions on Iran, a key supplier.

Pre-2005, the idea of sustained oil prices near $100 a barrel would have been unthinkable. Prices have risen so far so fast due to the reasons Chris highlights on this site that a "$120 lid" looks like a positive thing - as opposed to a radical departure from the "lid" of previous decades. 

I'm all for developments that work to prevent energy prices from marching higher. But we need to take the new shale oil supply in context as more expensive oil than we've been used to. Our new baseline cost for oil has risen materially vs past decades and that results in a trade-off: less "net energy" to do things with. This context is very important to the lens we use on this site.

(Also, you can contact us anytime via the Contact Us link in the footer of every page on this site. Or you can message us directly using the PM function.) 

FreeNL's picture
FreeNL
Status: Silver Member (Offline)
Joined: Mar 27 2013
Posts: 112
If the mainstream media says

If the mainstream media says 10 years , its actually 5 and 1 has already passed.

i dont believe that $200 a barrel within 4 years will be out of the question.  

 

LesPhelps's picture
LesPhelps
Status: Platinum Member (Offline)
Joined: Apr 30 2009
Posts: 728
A link you may be interested in

Chris did an excellent energy review recently that included the latest information on fracking and shale oil.

Here is a link:

http://www.peakprosperity.com/blog/80506/really-really-big-picture

Les

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