Peak Oil News

Tuesday, May 18, 2004

So why wouldn't oil prices rocket? - Alan Kohler -
The last "super giant" oilfield (more than 10 billion barrels) was discovered 40 years ago; the last American refinery was built 25 years ago; each successive American "driving season" guzzles more gas than the last.

The average oil discovery these days is small - 50 million barrels - and the average net present value of each reservoir is below the cost of exploration. Drilling for oil has not paid off for a long time.

Meanwhile, in America, rapacious consolidation and a clamp on new capacity has led to a shortage of gasoline, separate to the demand/supply picture for oil.


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