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Repsol CEO on Peak Reserves

by Luis de Sousa Thu Dec 8th, 2011 at 04:16:38 PM EST

Days ago an Oil industry service company published an article disguised as a journalistic piece with some interesting remarks. It makes me wonder if it refers to same World I live in.

Peak oil debate losing relevance due to new upstream technology: Repsol CEO

The debate over whether the world's reserves of hydrocarbons have now peaked and are in decline has lost relevance over recent years as new technology allows oil companies to find and exploit new hydrocarbon sources, the CEO of Repsol Antonio Brufau said Tuesday.

This is a cross post from At The Edge Of Time.

When did Oil reserves peak? er..., well they peaked in 1850 when their large scale usage by Man started. It just happens that Oil and Gas are the produce of chemical processes that take millions of years to synthesize them from dead organic matter. The rate of consumption by Man is incredibly faster, hence world reserves of hydrocarbons have been on a continuous decline ever since the very first oil well was drilled (or excavated to be more precise). Unless of course these gentlemen have joined the holy church of abiotic oil.

It goes on:

"The speed at which technology changes and its consequences have taken us largely by surprise. The peak oil debate, for example, has lost a great deal of its relevance in the past three years," Brufau told the World Petroleum Congress in Doha.

I once wrote that predicting Peak Oil is no longer a relevant exercise, but for the simple reason that we were living it right now. And yes, the interest on the subject may have waned in recent times, but because we just got ourselves into an economic maelstrom, that well, was triggered by rising energy prices. The fact that world Oil production has stalled during the meantime, in face of historically prices, seems to be irrelevant for Mr. Brufau.

Still not satisfied:

"The possibility that usable resources under commercially viable terms will run out is no longer a concern in the short or medium term," he said.

Interesting, so Repsol was afraid that Oil reserves could end in the short to medium term. For someone that doesn't seem to understand that they peaked once Man started extracting Oil this is an enigmatic remark. It is the first I ever heard of someone having this sort of doubts, even the most pessimistic forecasts point to Oil reserves still existing 100 years from now.

And the grand finale:

Brufau said Repsol's shale reserves in Argentina are currently profitable to develop at $30/barrel finding, development and operating cost.

One of these days some local leader may just get enough of these claims, go on a nationalization spree and then tell these smart heads: "Now give me 30$ Oil!"

It is an interesting world that of Oil executives, one where prices are always low and production for ever rises.

Expect that kind of rhetoric even five years after liquids production starts to decline.

Schengen is toast!
by epochepoque on Fri Dec 9th, 2011 at 12:58:05 PM EST
World Petroleum Congress in Doha, Qatar; Total pulls itself into line. December 8, 2011 - Alekletts Energy Mix via Energybulletin
Before the World Petroleum Congress in Doha, Qatar the newspaper Gulf Times wrote in an article that, "A highlight is the keynote speech that will be delivered by Total's President and CEO, Christophe de Margerie on the theme: "Peak oil - ahead of us or behind us?" on December 7". The fact that Peak Oil is the theme for one of the seven main presentations at the congress shows that Peak Oil is now an important topic of discussion in the international and national oil industries. Earlier, Total had indicated that they believed Peak Oil could occur before 2030 so it was with some suspense that we awaited the message from Total and their managing director de Margarie.
One comment on Energybulletin said it best:
A discussion on Peak Oil at the World Petroleum Congress? WE'VE WON. All the other talk about technology is just a way for the oil companies to let themselves and others down lightly. Over the next decade, the near-certainty is that general acceptance of depleting oil production will grow. The big break-through has been made. The fat lady has sung!

Schengen is toast!
by epochepoque on Sun Dec 11th, 2011 at 04:43:01 AM EST

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