Tech Talk – New Energy Report from Harvard Makes Unsupportable Assumptions
The Tech Talks of the last few months have followed a path of looking in a relatively realistic manner at crude oil production with emphasis on that coming from the United States and Russia, as well as Saudi Arabia, the current focus of my weekly pieces. An earlier piece looked at a Citigroup report of considerable optimism, and the post explained why, in reality, it is impractical to anticipate much increase in US production this decade. Since then, after reviewing the production from Russia, several posts have shown why the current lead in Russian daily crude oil production is likely to be soon over and then decline, as the oil companies are not bringing new fields on line as fast as the old ones are running out. Saudi Arabia, as the current posts are in the process of explaining, is unlikely to increase production much beyond 10 mbd, since Ghawar, the major field on which its current production level is built, is reaching the end of its major contribution, though it will continue to produce at a lower rate into the future. The bottom line, at least to date, is that there is no evidence from the top three producers that their production will be even close, in total, to current levels by the end of the decade.