Suncor Energy Inc T.SU

The Imminent Peak In Permian Oil

[MigraineCall]

“Based on current drilling activity, the average publicly traded Permian company will run out of Tier 1 drilling locations within 3.7 years. We firmly believe that as the market realizes how little Tier 1 acreage remains, those with the best inventory will be treated as valuable assets. If we are correct, the age of shale growth is now behind us, and the reality of Hubbert’s Peak is at hand. The immense growth of the shales over the past decade has blinded many analysts to the declining trends in global conventional production. That luxury is about to end.”

• The Permian Basin's oil production is set to hit "Hubbert's Peak" late next year, indicating a turning point after which the production will start to decline.
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• Much of the high-quality acreage in the Permian Basin has already been drilled, contributing to the basin's declining potential and an increasing reliance on less prolific "child" wells.

https://oilprice.com/Energy/Crude-Oil/The-Imminent-Peak-In-Permian-Oil-What-Does-it-Mean-For-Investors.html
 

[Experienced]

I guess you could me a skeptic but over the years I have seen the world swing back and forth between the world being awash with oil to we are running out of oil.  In the mid 70s the National Energy Board in their Annual Oil Report recommended to Paliament that Canada should cut its oil exports to the US since we had less than 5 years of oil left in Canada.  Now, about 50 years later we

[matt2018]

On the other side of that Experience, we have also heard last 5+ years from the "experts" that oil demand will peak and begin to fall ("peak oil" predictions, dime/dozen) only to see it to keep going higher (over 100M bbl/day and counting). No one knows when oil demand peaks as everyone who has tagged a date on it up to present day, has been wrong. The industry can't manage