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View Diary: The 4 biggest oil fields in the world are in decline (197 comments)

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  •  The fact that EOR exists means little. (none)
    It is only used when:

    A.  The formation is shaped and structured correctly.

    B.  The price of oil is high enough to justify the expense.

    and C.  The oil company in question is out of options.

    And "C" only uderscores the original diary's point.  The Saudis are holding a losing hand and bluffing.  One reason Russia and Iraq hold so much promise is that their extraction technology has been so backward for so long that they have failed to properly produce their fields.

    "Out here in the middle, where the center's on the right, and the ghost of William Jennings Bryan preaches every night..."

    by Nineteen Kilo on Thu Jan 26, 2006 at 10:17:51 AM PST

    [ Parent ]

    •  So KBR and SLB... (none)
      can come along with a "better straw" to coax the less willing resource out of the ground...

      People in Eurasia on the brink of oppression: I hope it's gonna be alright... Pet Shop Boys: Introspective

      by rgilly on Thu Jan 26, 2006 at 11:51:34 AM PST

      [ Parent ]

      •  Not sure what your point is. (none)
        KBR is a construction and mercenary outsourcing company.  Their owner, Halliburton, is Schlumberger's direct competitor, not KBR.

        Of course we're working on "better straws."  (Would that it were as simple as your metaphor.)  But better straws are expensive.  Nobody buys them unless the price of oil stays up, so it's sort of a closed-loop system.  Higher prices=>more technology investment=>higher production=>lower prices=>less technology investment=>less production=>higher prices.  Lather, rinse, repeat.

        What breaks the loop is when prices stay high because demand inceases regardless of price.  That is what is currently happening, but it will pass, as always.

        "Out here in the middle, where the center's on the right, and the ghost of William Jennings Bryan preaches every night..."

        by Nineteen Kilo on Thu Jan 26, 2006 at 12:04:35 PM PST

        [ Parent ]

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