Matt Simmons - Start To Prepare For 40 - 60 Million Barrels/Day, Not 120 - Rigzone

[hatrack]

EDIT

Still, drastically increasing the supply of oil and gas could be difficult. "The oil industry was gutted between 1985 and 2000 because of low prices," said J. Robinson West, chairman of PFC Energy, an industry consulting concern in Washington. "It will be difficult now for it to meaningfully increase its production capacity." "The fact is there is lots of oil in the world, but the industry and international capital can't reach it," Mr. West said, noting limits imposed on Western companies by holders of oil reserves in the Mideast and elsewhere.

Houston investment banker Matthew Simmons takes a pessimistic view. He believes the world should be preparing for sharply lower oil production. He points out the NPC study didn't squarely address one important issue raised by Mr. Bodman in requesting the study: the point at which global oil production will plateau and then begin to decline, often referred to by the shorthand term "peak oil."

"We should be preparing for a time when, in 10, 15 or 20 years, oil production is likely to be 40 million barrels a day to 60 million barrels a day, not 120 million," he said.

The NPC study noted that total global endowment of fossil fuels appears to be huge, but only a fraction of those estimated volumes can be produced because of technical constraints. It said the Earth's underground stores of oil were estimated at 13 trillion barrels to 15 trillion barrels.

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http://www.rigzone.com/news/article.asp?a_id=47672

[phantom power]

1. It's remarkable to see investors admitting this in public.

Kind of funny to read this, and "Dow breaks 14K" in the same morning.

[hatrack]

2. I think whatever tiny little umbilicus connected the stock market to reality got severely pinched .

God knows, there's no oxygen getting through.

[Kolesar]

5. the Dow is not in "record setting territory" considering the deflation of the US dollar..eom

[ramapo]

3. We'll start to prepare after it happens

There's no better time for preparations than the future

[hatrack]

4. But whatever you do, don't rush - it might cause a PANIC!

:eyes:

[pscot]

6. The National Petroleum Council offers up a bowl of cherry

koolaid. Hatrack finds the pits.