American Energy Collapse Incoming by John Little

 American Energy Collapse Incoming

A couple days after getting out of the hospital, I saw a graph that I had hoped to never see:

Future American Oil Production from the Top Three Basins

By the way 'PUD Oil' means Proved Undeveloped Reserves. These are US oil fields that are proven to be able to produce oil, but have not been drilled yet.

Now, why does that graph represent such a complete disaster?

Well, the first thing that you need to know is that these are all wells and reserves that require hydraulic fracturing to get the oil out of the ground. And fracked wells die out very quickly. Within one year production falls off rapidly. So think of it like poor Sisyphus rolling that rock up the hill, only to have it roll back down again... forever.

These wells are also expensive to drill and maintain. If oil stays below $80/barrel, new wells won't be drilled, and drilled wells will be capped. Furthermore, we have already drilled out most of the first tier areas in the Permian Basin. There's a reason why Permian Basin oil production will be dropping even though there appears to be so much oil still available.

What's left is far too expensive to drill at current oil prices. And, you don't want oil prices to to be high enough to make drilling those wells viable.

Now, most of you live in wealthy countries that can probably adjust to higher fuel cost. And you will probably be the last to be affected by these declines.

FULL ARTICLE AT: https://revelationsix.substack.com/p/american-energy-collapse-incoming?utm_source=post-email-title&publication_id=975392&post_id=160659491&utm_campaign=email-post-title&isFreemail=true&r=1v9n4o&triedRedirect=true&utm_medium=email