This item sketches the apparent emerging oil production picture over the next decade. The surprise is the expected levels of production out of
. I would like to believe them except that they arrive rather conveniently to reassure us all that there is no problem with oil supply. The point is that we are been promised around 12 million barrels per day by the end of the decade. Iraq
The decline of current production is not predicted at all by anyone. My own best guess is no guess at all except to say it could be fairly modest which is rather unlikely to massively catastrophic which is also unlikely. The projected new production is around fifteen percent of current production over the next decade. Yet all historic major fields are well into decline.
As I have stated in the past present production levels are not sustainable even with what is promised. We need to be under 50 million barrels fairly soon. The question is if we will be ahead of the curve or if we will be forced.
I do not know if we risk a present decline of twenty million barrels per day or not over the next decade. Historical comparables suggest that it is so.
On a more upbeat note, enhanced production using THAI can make up any short fall by the end of the decade by producing deeper heavy oil everywhere. Burning oil can remain an option for a couple of decades or more yet. The pricing structure however will drive the development of every likely alternative and this will be a transition period.
The good news is that the transition may continue to be fairly smooth.
Latest Canadian Oilsand Production Growth Forecast and Summarizing Main World Oil Production Growth Sources
FEBRUARY 10, 2010
Canadian Association of Petroleum Producers have an updated forecast for canadian oil production and in particular the oilsands
Wall Street Journal - Lower labour and material costs are enabling more oil sand projects to get restarted
Adding Significant Oil in
Iraq oil production could increase by 9.5 million barrels of oil per day over the next six years.
Brazil is projected to add 2-3 million barrels of oil per day by the largest private owner of Brazillian oil, Eike Batista
The United States is increasing its oil production and could add a million barrels per day or more over the next few years.
Economics coming into line for some projects
-Driven by stronger oil prices and lower costs
-Projects under construction:
Imperial Kearl Lake
•Shell Jackpine and Shell upgrader including Quest CCS project
•Suncor Firebag Phases 3 and 4
Devon Jackfish Phase 3 application in 2010
–application for phases E, F, G Cenovus Christina Lake
•ConocoPhillips/Total –Surmount phase 2
phase 1 Sunrise
-Enhanced Oil/Tight Oil
•Technology enabled plays such as the Bakken, Cardium and Viking (multi-frac horizontal wells)
•Narrow Light/Heavy Differentials
-Good news for heavy oil projects
-Tough for stand alone upgraders in the short term
•Competing against existing capacity left empty by
Venezuela and Mexico