The surprising US shale boom continues to confound peak oil doomers and Russian neo-imperialists. At the same time, this energy revolution is fueling renewed manufacturing and other industrial development in the US — and fueling hope for similar renewal in other nations that possess tight rock hydrocarbon resources.
Oil production will continue to soar in the six major U.S. shale plays, with more barrels pumped per rig, according to federal projections released Monday.
Total oil production in the six regions is expected to grow to 4.43 million barrels per day in June, an increase of 75,000 barrels per day compared to May, according to the U.S. Energy Information Administration. The federal agency expects oil rigs will produce an average of 271 barrels per day each, an increase of one barrel over May. __ http://fuelfix.com/blog/2014/05/12/new-federal-projections-show-oil-production-soaring-as-rigs-boost-efficency/
The nature of tight rock oil wells means that each well is limited in how much oil it can produce over its lifetime. But the number of wells that can be drilled and fracked is enormous.
The US shale plays have been a bonanza for smaller oil companies. The huge multi-nationals have been late to the game.
Smaller, independent North American oil producers own five times more land in the major U.S. shale plays than Big Oil companies like BP, Royal Dutch Shell and Exxon Mobil. Shale reservoirs from South Texas to North Dakota are dominated by names like EOG Resources, Continental Resources and Pioneer Natural Resources. The diverse array of competitors from private equity firms to independent producers has made it tougher for Big Oil to compete. __ http://fuelfix.com/blog/2014/05/07/bp-exec-us-shale-could-be-laboratory-for-bounties-abroad/
Smaller companies are more nimble, and often have the advantage in developing new industries — as long as government interference is kept to a minimum. In an opportunity economy with low entry costs for starting new business, one expects to see this type of dynamic turnover — or creative destruction — in new technologies and industries. Opportunities for smart entrepreneurs abound in countries wise enough to allow businesses to compete without undue government taxation, regulation, and biasing of the marketplace.
Global oil prices remain below the fiscal breakeven price for Russia, Iran, Venezuela, and many other oil dictatorships. Part of the reason for this price stability is the new and growing output of oil & gas from US private land-based shale, plus Canada’s oil sands production.
“North America’s shale boom has been a huge calming factor,” Lysle Brinker, an oil analyst at IHS Energy, told Bloomberg. “Without it, we might be seeing $150 oil right now,” he added. Shale production has increased daily US crude output by about three million barrels to more than eight million since early 2011. While Canada has added more than a million barrels a day since May 2011. Petroleum imports now account for only 28 percent of US consumption, down from 60 percent in 2005. _ http://invezz.com/news/commodities/10862-us-shale-boom-stabilises-oil-price
Dangerous Children achieve the ability to support themselves financially at least 3 different ways by the age of 18. This is much easier to do when economies are booming, and opportunity is rampant. But Dangerous Children can do the same thing even in economies depressed by government corruption and terminal policy stupidity. Dangerous Children master high value skills and trades as teens, which gives them an economic leg up even during the extended Obama recession.
In a mixed economic system such as the US, most Dangerous Children will move toward opportunities in private industry, investment, professions, and entrepreneurial fields. But a few will take advantage of opportunities inside government, for various reasons.
It is best not to make the mistake of extrapolating current trends in government and international affairs too far over the horizon. Anticipate how things could trend in different directions. Make contingency plans for such changes. Sometimes change happens very rapidly, as in present-day Ukraine, Syria, and elsewhere. Make provisions.